How much does a car cost to own, really?

Hand on heart: Do you know how much a car costs? It's easy to think that a car only costs what you pay when you buy it, but if you look a little closer, there are more parameters to take into account.

Many car buyers stare blankly at the car's price tag but fail to check how much it costs to own in total. How much you have to pay for vehicle tax and insurance of course affects how high your monthly costs will be. Vehicle tax, in turn, depends on the type of fuel and carbon dioxide emissions or vehicle type and tax weight. And how high the insurance premium will be depends on, for example, the car's mileage, price and engine. And you, the total cost of owning a car is sometimes referred to as TCO (total cost of ownership) - so now we've sorted it out.

The famous depreciation

You've probably heard the phrase "A brand new car loses value the second you drive it for the first time!". And of course that's usually true, since the single biggest cost for cars is the depreciation. But this mainly applies to new cars. When it comes to used cars, the biggest depreciation has already occurred. For some models, the value is even halved in the first year. Anyone who really wants to save money is therefore best off buying a used car . But if you absolutely want a brand new car, it's important to not only look at the price of the car, but also to look at all the costs that come with ownership.

Guesses wrong by up to 36,000 kronor

It is also easy to misjudge how much a car costs to own, regardless of whether it is new or used. When Kvdbil conducted a survey a couple of years ago, it turned out that most people thought that a three-year-old car cost about SEK 1,000 to SEK 3,000 less to own per month than it actually does. This corresponds to an extra cost of up to 50 percent.

So how can you keep track of the total cost of ownership? In addition to being aware of the depreciation, look at future costs for vehicle tax, insurance and service. It is also easy to miss possible costs for parking or new tires. And how much the car rolls per year, and the fuel costs that come with it.

Examples of costs to keep track of

Tax

How much vehicle tax you pay depends on the car model you choose and how much carbon dioxide it emits. If you buy from us at Kvdbil you can always see the tax you need to pay for the car under the “Car Facts” section of the car’s advertisement.

Insurance

Do you need full or partial insurance? The cost of insurance varies and depends on the scope it gives you, but also which car you have and of course which company you take out insurance through.

Psst! If you buy a car via kvd.se, we always offer you 7 days of insurance through our Kvdbil Försäkring . This way you are safe from the first moment.

What soup?

Do you drive many miles per year? Choose a fuel-efficient car. It is mainly at many miles that fuel-efficient cars really have an effect on both your wallet and the environment.

If you have the opportunity to charge at home or at work, for example, an electric car or electric hybrid could be something for you.

Have a repair buffer

The need for repairs varies of course, but having a repair buffer for unforeseen events of 5,000 SEK per year is a good guideline. If you don't use the buffer, you can put the money towards the annual service instead.