THE COSTS OF CAR OWNERSHIP - THE DIFFICULTY IN DECIDING WHAT TO TAKE INTO ACCOUNT, AND HOW TO DO THIS

BILAEGANDETS KOSTNADER - MAETPROBLEM OCH MAETMETODER

The cost of car ownership is the sacrifice, in monetary terms, which the car owner makes in consequence of owning a car. These consequences are due partly to his decision to have a car, and partly to his decision to use it. He also makes consequential decisions all the time, the costs of which vary. Costs dependent on mileage are those of fuel, tyres, service and oil. Repair costs are defined as the sacrifice made in compensation for depreciation due to wear prior to resale. Repair costs are fixed costs occurring at irregular intervals. Depreciation is the difference between original and resale price. A better definition is the difference between resale price and the price of a replacement car of "identical" standard; an "identical" car is however dearer due to inflation. Resale price is influenced by age, mileage and condition, and is subject to great variation. The first definition is simpler, but the original price must be adjusted for inflation. Capital costs are tied-up capital plus real or notional interest charges. Miscellaneous costs are taxes, insurance, insurance excess in case of accidents, and parking costs. All the above can be expressed as average annual costs. /TRRL/

• Corporate Authors:

  Swedish Institute For Marketing Studies

  Viktoriagatan 3
  Goeteborg,   Sweden 
• Authors:
  • Lindstvoem, J
• Publication Date: 1976

Language

• Swedish

Media Info

• Features: Figures; References; Tables;
• Pagination: 137 p.

Subject/Index Terms

• TRT Terms: Attitudes; Automobiles; Costs; Depreciation; Gasoline; Insurance; Motor vehicles; Operating costs; Ownership; Parking; Repairing
• Uncontrolled Terms: Use
• Old TRIS Terms: Repair costs
• Subject Areas: Economics; Finance; Highways; Society; Vehicles and Equipment; I96: Vehicle Operating Costs;

Filing Info

• Accession Number: 00142485
• Record Type: Publication
• Source Agency: Swedish National Road and Traffic Research Institute
• Report/Paper Numbers: Monograph
• Files: ITRD, TRIS
• Created Date: Jul 19 1977 12:00AM