Real Cost of Ownership of Car in India. Complete Cost Break Up Including Service, Maintenance, Insurance, Fuel Cost Breakup of Petrol, Diesel Car
Its Important to determine the total cost associated for holding a car for a period of time.
Some Facts (Diesel Vs Petrol Cars)
Diesel Cars - have generally higher cost of maintenance vis a vis Petrol Cars -
Between Hatch, Sedan, Utility Vehicles
Its seen that :- Manufacturers have differential pricing and generally Hatchback Cars are considered relatively economical - due to less labor cost, lesser fluid capacity vis a vis there Sedan and SUV Cars in the Segment
A New Car Ownership costs is based on 8 Factors
If a low maintenance car like Maruti Swift is taken into consideration for 10,000 Kms a Year
Car Costing - Swift Vxi as example and Driven 10000 Kms a Year | |
New Car Purchase - Heads | Cost to be Incurred |
Swift Vxi Upfront Purchase Cost | Rs. 7.7 Lakh in Delhi as On Road Price |
Fuel Cost for 70,000 Kms @ 14 Kmpl Mileage (@ 96 rs per Litre in Delhi, considering 2018 rates) | Rs 4.8 Lakh at Rs 80 for Petrol |
Finance @ 70% on Exshowroom i.e 5 Lakh | Rs. 1.2 Lakh Interest @ 9% for 5 yrs |
Insurance (2nd to 7th Year with 2 Claims n NCB) | Rs. 1 Lakh approx |
Scheduled Servicing + Wear and Tear Items | Rs. 70,000 approx |
Building Parking Slot - though its for Lifetime - Pro Rata for 7 yrs over 30 yrs | Rs. 50,000 |
Car Wash and clean | Rs. 25.000 (@ 300 rs per month) |
Other Miscellaneous Head - Parking @ Metro, Mall, Office | Rs. 84000 (@ 1000 rs per Month) |
Less | |
Resale Value at End of 7th Year | Rs. 3.5 Lakh approx |
Net Outflow | Rs 13.5 Lakh approx |
Running Cost turns out to be almost close to Rs 20 per Km for Owning Maruti Swift for 7 yrs
Note : For Salaried, There are no Income Tax Benefits and no depreciation benefits on buying a car or taking a loan on it or on maintenance expenses.
So - your Estimated Ownership cost will be Rs. 15 per Km in case of Swift Petrol - if driven @ 10,000 Kms a Year for 7 Yrs
If you Intend to Owe a SUV Car like Hyundai Creta and intend to drive even more
Owning Hyundai Creta Cost | Cost to be Incurred |
Hyundai Creta Sx (exshowroom - 14.58 Lakh) | Rs. 16.63 Lakh in Delhi as On Road Price |
Fuel Cost for 1 Lakh Kms @ 12 Kmpl Mileage | Rs 8 Lakh approx |
Finance @ 70% on Exshowroom i.e 10 Lakh | Rs. 2.4 Lakh Interest @ 9% for 5 yrs |
Insurance (2nd to 7th Year with 2 Claims n NCB) | Rs. 2 Lakh approx |
Scheduled Servicing + Wear and Tear Items | Rs. 90,000 approx |
Building Parking Slot - though its for Lifetime - Pro Rata for 7 yrs over 30 yrs | Rs. 50,000 |
Car Wash & Clean | Rs. 25,000 (@ 300 rs per month) |
Other Miscellaneous Head - Parking | Rs. 60,000 (say goes slight lesser) |
Less | |
Resale Value at End of 7th Year | Rs. 6.25 Lakh approx |
Net Outflow | Rs 23 Lakh |
Running Cost suddenly turns out to be even more @ Rs 23 per Km for owning Hyundai Creta
Cost will further mount - if you drive lesser even - say 5000 Kms to 7000 Kms a year and your ownership cost at end of 7th Year or 30,000 Kms will be almost Rs. 30 per Km.
Not to deter Car Buying - But Buy Car - if there's genuine requirement in family - owning 3rd to 4th Car - for sake of ownership without need is not really a good idea. Its your Hard Earned Money - spend it Judiciously !!
Comments 8
Very well written and very informative article. Kudos!
Your calculations are not accurate
What correction should be made?
It's better to purchase Electric Vehicle then only you will be in Profit. If you are frequently using car, daily 70 km a day.
Written very well, thank you for sharing your experience.
Very informative
Nice to read such articles with India as a subject.
Car cleaning cost need be included. In Mumbai @ Rs 400/ - Per month, it is nearly Rs 5,000 a year and Rs 35,000 for seven years.
The cost of Tolls and Environment clearance certificate cost is also there.
Very well compiled article. Well done.