Case study: Life-cycle costs of three cars

The life-cycle costs of cars in different classes were calculated for a comparative overview of the market in the context of the Öko-Institut product initiative “EcoTopTen” (study year 2005). The results are presented below, taking thee small cars as an example (Opel Corsa 1.0 Twinport, 3-door; Fiat Punto 1.2 8V; Citroen C2 1.1 Advance). The calculation was based on new cars that are driven for four years at 12,000 km a year and then sold.

The following costs were taken into account: Acquisition (loss of value – calculated from acquisition costs and re-sale value, imputed interest rate of acquisition costs, costs of delivery and registration); fixed costs (tax and insurance, garage rent, parking, maps, costs of main inspection and exhaust emission check etc.); running costs (fuel costs, oil replacement costs, car wash and care) and servicing costs (tyre wear, service, maintenance). Repair costs were not taken into account since the calculation was for new vehicles with four years of single ownership. Examples of uncertainties, fluctuations or ranges of variation regarding costs include discount campaigns, interest-free loans on purchase and the major differences in car insurance (region, no-claims bonuses etc.).

The results are presented in the figures beside.

Conclusion

If we look solely at the purchase price, all three models cost more or less the same, the Citroen being the most expensive. Despite this, it comes off best in the annual life-cycle costing and has € 750 fewer costs per year than the next most inexpensive car, the Fiat.

Alongside the acquisition costs (roughly 40% of costs), fixed costs in particular play a major role (roughly a third of costs). Running costs (fuel costs, oil and car care) come in third place, at 20% of costs. This cost differentiation also shows why it is so hard to change from car driving to public transport. When a person runs a car, their acquisition and fixed costs are 70%, while the variable costs per kilometre are low in comparison.