Calculating the true cost of car ownership

In December 2008 I bought my 2004 model-year, 80000km Ford Fiesta 1.6i Ambiente for R72,800, freshly serviced. It now has 99,100km on the clock and went in early for the 100,000km service due to a fault that will yet cost me a couple grand more to get fixed properly.

Here are the costs so far. Maintenance includes the service, two front tyres and wheel alignment, a battery, car washing, and a couple of random repairs.

  • Parts & Maintenance: R4,539
  • Licensing: R872
  • Petrol: R11,854
  • Parking: R410
  • Fines: R615
  • Santam 3/F/T insurance: R2,989
Total cost: R21,279

But there's more: the car's current book value is R59,200 according to Santam, a depreciation of R13,600 since purchasing, bringing my total costs incurred during ownership to R34,879. Divide by 19,100km travel gives a complete running cost of R1.826 per kilometer. Yet of this cost, petrol only makes up 62c.

So, at least for me, petrol is only one-third of the all the costs I've incurred owning a car.  Note: I've include costs not part of proper Total Cost of Ownership: namely avoidable costs (fines/parking) and mileage-dependent costs (petrol,repairs).

Edit: Added insurance costs split out licensing as Alapan suggested, qualified total as "costs incurred".

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