Energy and insurance are only two parts of car ownership cost. A comparable monthly figure also includes depreciation, tax, maintenance, finance and potential capital effects.
Costs that do not arrive as a monthly bill
Monthly payments are easy to assign. Annual costs and depreciation that only becomes visible when the car is sold need a shared modelled estimate. Four areas are especially relevant:
1. Depreciation
Depreciation does not appear as a payment. It becomes visible later as a lower resale value. The amount depends on the vehicle, its age and mileage, and the market. For the comparison, spread the difference between purchase price and expected residual value across the ownership period.
2. Opportunity Costs (Capital Costs)
If you pay €30,000 cash for a car, this money can no longer earn interest. At an assumed return of 5%, €30,000 in tied-up capital corresponds to €1,500 per year. The return is an uncertain assumption and should remain adjustable in the comparison.
3. Maintenance and Wear
Tires, servicing, inspections and repairs occur at irregular intervals. A monthly allowance includes these costs in the comparison. Set it according to the vehicle's age, mileage and warranty cover.
4. Operating Costs
These include fuel or electricity, insurance, vehicle tax, cleaning and parking. Use the same mileage, consumption and regional prices for every option in the comparison.
Use Specific Figures, Not a Rule of Thumb
Car-cost tools such as the ADAC calculator combine depreciation, running costs, maintenance and fixed costs. Your comparison should use figures for the specific car and your annual mileage.
What the Total-Cost Comparison Is For
Total cost of ownership puts different alternatives on the same basis:
- Buying vs. leasing: Compare more than the payment and purchase price. Include depreciation, upfront costs, interest and residual-value risk over the same period.
- Car vs. public transport or car sharing: Compare monthly fixed costs and usage-based costs for the same travel needs.
Conclusion: Put Every Cost on the Same Timeline
Once depreciation, running costs and finance are spread across the same period, you can compare vehicles and ways of paying on a consistent basis. Return and residual value remain adjustable assumptions. Carculated brings these costs together in one modelled estimate.