August 2008
Carrying costs vs. operating costs
Costs can be divided into carrying costs, tied to the vehicle purchase, and operating costs associated with ongoing driving
expenses. Operating costs include fuel, insurance, and maintenance and repair costs. Depreciation, interest, and tax are carrying
costs.
Carrying costs diminish significantly over time, while operating costs rise slightly, primarily due to increasing maintenance and repair costs. Still, on average, operating costs are less than carrying costs until a vehicle is about five years old.
Still, we found that some cars are expensive to drive, even though they're affordable to park in your garage. Some small cars, for example, have low prices, but their high insurance costs make them relatively expensive to operate. The Toyota Yaris is the least-expensive car to own in our estimation, and most of its costs go into insurance, gas, and maintenance.
But small cars are the exception. On average, carrying costs outweighed operating costs by 60 percent over the first five years for the average model we examined. For example, carrying costs for the Lexus LS add up to more than $12,500 a year. But it is relatively inexpensive to drive at just $3,900 a year.
Even so, operating costs for some vehicles can be surprisingly high. The Ford F-250 turbodiesel, for example, costs about $7,500 a year for fuel, insurance, and maintenance and repair. The Mitsubishi Lancer Evolution is even more expensive, costing more than $12,000 a year to run. Insurance alone on the Evo costs almost $2,500 a year.
AVERAGE CARRYING VS. OPERATING COSTS
Carrying costs of depreciation, interest, and tax diminish over time. Operating costs, including fuel, insurance, and maintenance and repair increase over time.
Carrying costs diminish significantly over time, while operating costs rise slightly, primarily due to increasing maintenance and repair costs. Still, on average, operating costs are less than carrying costs until a vehicle is about five years old.
Still, we found that some cars are expensive to drive, even though they're affordable to park in your garage. Some small cars, for example, have low prices, but their high insurance costs make them relatively expensive to operate. The Toyota Yaris is the least-expensive car to own in our estimation, and most of its costs go into insurance, gas, and maintenance.
But small cars are the exception. On average, carrying costs outweighed operating costs by 60 percent over the first five years for the average model we examined. For example, carrying costs for the Lexus LS add up to more than $12,500 a year. But it is relatively inexpensive to drive at just $3,900 a year.
Even so, operating costs for some vehicles can be surprisingly high. The Ford F-250 turbodiesel, for example, costs about $7,500 a year for fuel, insurance, and maintenance and repair. The Mitsubishi Lancer Evolution is even more expensive, costing more than $12,000 a year to run. Insurance alone on the Evo costs almost $2,500 a year.
AVERAGE CARRYING VS. OPERATING COSTS
Carrying costs of depreciation, interest, and tax diminish over time. Operating costs, including fuel, insurance, and maintenance and repair increase over time.
