What your car really costs per month: working out the cost per kilometre
A car costs more than fuel. Add the monthly costs (fuel, parking), then the yearly ones divided by 12 (insurance, inspection, servicing, tyres) and the loan payment, if there is one. Divide the total by the kilometres driven to get the cost per kilometre and compare it with the alternatives.
Contents
What goes into the cost of a car?
Most people count petrol or diesel and nothing else. The other costs appear rarely and look small, but together they often exceed fuel.
- Monthly: fuel, parking, washing.
- Yearly: compulsory insurance, the technical inspection, taxes, routine servicing.
- Irregular: tyres, a battery, unexpected repairs.
- Hidden: depreciation (loss of value over time) and, if the car is financed, interest.
How do you calculate it? An example
Divide the yearly costs by 12 so you can put them next to the monthly ones. The example is illustrative.
| Cost | Frequency | Per month |
|---|---|---|
| Fuel | monthly | 2,000 lei |
| Compulsory insurance | 2,400 lei a year | 200 lei |
| Technical inspection and taxes | 600 lei a year | 50 lei |
| Routine servicing | 3,600 lei a year | 300 lei |
| Tyres and repairs | 2,400 lei a year | 200 lei |
| Parking and washing | monthly | 150 lei |
| Total | 2,900 lei |
What does that come to per kilometre?
If the car covers 1,000 kilometres a month, the cost is 2,900 ÷ 1,000 = 2.9 lei per kilometre, without depreciation and without a loan payment.
Add a loan payment of 3,000 lei a month and the total rises to 5,900 lei, which is 5.9 lei per kilometre. Few kilometres push the cost per kilometre up, because many costs are fixed.
Car or alternatives? How to compare properly
Compare the cost per kilometre with what you would pay for the same trips another way: public transport, a taxi, a rental by the hour. Use real trips from the last month, not idealised ones.
The car comes out better when you use it often, for the whole family or on distances public transport does not cover. For short, predictable routes, the alternatives can cost less.
How do you lower the cost without giving up the car?
- Service it on time; a small problem ignored turns into a big one.
- Check tyre pressure; fuel use rises when it is too low.
- Combine errands into a single route instead of several short ones.
- Compare insurance offers every year.
- Use cheaper parking, even if it means a few minutes’ walk.
How do you set money aside for yearly costs?
In the example above, the yearly costs (insurance, inspection, servicing, tyres and repairs) come to 750 lei a month. Set that amount aside in a separate place every month.
That way, when the servicing bill or insurance renewal arrives, the money is already there. In Family Calculator you can follow the “Transport” category and see whether the month went over plan.
Frequently asked questions
What is car depreciation?
It is the loss in the car’s value over time. You do not pay it month by month, but you feel it when you sell. For a full calculation, add it to the costs.
Is a second car worth it for a family?
Work out its monthly cost as in the example and compare it with the time saved or with other transport options. If most trips overlap, probably not.
How often should I recalculate the cost?
Once a year or after a big change: a new car, a new job, a rise in fuel prices.