Which Of The Following Is A Fixed Cost Of Owning A Vehicle

Itemized boilerplate total costs for the average American commuter to own and operate an machine.^[1] This yearly value, around 6650 USD, corresponds, co-ordinate to AAA, to a small sedan.^[2]

The car internal costs are all the costs consumers pay to own and operate a machine.^[3] Usually these expenditures are divided past stock-still or standing costs and variable or running costs.^[4] Fixed costs are those ones which practice not depend on the distance traveled by the vehicle and which the owner must pay to keep the vehicle ready for use on the road, like insurance or route taxes. Variable or running costs are those that depend on the use of the car, similar fuel or tolls.^[5]

Compared to other pop modes of rider transportation, especially buses or trains, the machine has a relatively high cost per passenger-distance traveled.^{[half dozen]} Motorists in the United Kingdom spend, on average, roughly 1/3 of their average net income to operate a car,^[7] while motorists in Portugal spend approximately 1/2 of their net income. For the average car owner, depreciation constitutes about half the cost of running a car.^[7] The typical motorist underestimates this fixed cost by a meaning margin.^[eight]

The IRS considers that the average United states of america motorcar has a total cost of 0.58 USD/mile, effectually 0.32 EUR/km.^[nine] According to the American Automobile Association the boilerplate commuter of the average sedan, spends totally approximately 8700 USD per year, or 720 USD per calendar month, to own and operate their vehicle.^[2]

Fixed costs [edit]

Car acquisition [edit]

The car itself every bit a toll. The cost tin be reduced past buying a reused motorcar. But the reused automobile may have hidden defects, hidden problems, or exist about to be out of norms. It is the virtually shallow and about immediate toll. But it tin can exist delayed nether a loan scheme.

Loan costs [edit]

Car finance comprises the different financial products which allows someone to acquire a car with whatsoever arrangement other than a single lump payment. When used, and for the purpose of assessing the individual financial costs, i must consider only the interests paid by the auto owner, every bit some part of the amount the owner pays each calendar month for the finance is already embedded in the depreciations costs.

Depreciation [edit]

Normalized auto depreciation for several models obtained from online retailer from U.s..

The yearly depreciation of a car is the corporeality its value decreases every year. Unremarkably a car'due south value is correlated with the toll information technology has on the market, but on average a auto has a depreciation effectually 15% to twenty% per year.^[10] ^[eleven] Depending on market weather condition, cars may depreciate between 10-30% the kickoff year.^[12]

Motorcar taxes [edit]

Car taxes, road taxes, vehicle taxes or Vehicle Excise Duty are the corporeality of money car owners pay the government to allow the machine to operate inside that region or state. These taxes serve to maintain the road infrastructure or to compensate the negative externalities acquired past the motor vehicles. These taxes may depend on engine deportation, vehicle weight, miles traveled, CO₂ emissions, or the automobile value.

Insurance [edit]

Insurance serves to provide financial protection against physical damage and/or actual injury resulting from traffic collisions and against liability that could also arise there-from.

Inspection [edit]

Vehicle inspection is a procedure mandated by law in which a vehicle is inspected to ensure that it conforms to regulations governing safety, emissions, or both.

Driving license [edit]

A driving license is oft required to bulldoze a motorcar.

Cost of capital [edit]

The cost of capital, applied to a buy of a automobile, is the amount of money the motorcar possessor could have obtained, if they, instead of buying the car, applied that amount of money to other worthy investment. The toll of upper-case letter is the rate of return that upper-case letter could be expected to earn in an culling investment of equivalent adventure. Considering by default the automobile has depreciation, and that such depreciation is already considered at a sure cost detail, the cost of capital of owning a auto, is then the income that the car possessor could take obtained with the coin spent on such car. One example could be a mutual standard involvement rate in a deposit business relationship.^[thirteen]

Running costs [edit]

Fuel [edit]

The fuel costs depend basically on four factors, namely the distance travelled by the car, the toll paid for the fuel, the energy efficiency of the car and the type of driving. In Western countries, this cost normally is the second highest later on depreciation.

Maintenance [edit]

The maintenance of a auto can have the purpose to exist a long term or a brusk term maintenance. This cost might be very irregular and somewhat unpredictable but tends to increase with the historic period of the car. On this particular are included car parts that need to exist replaced after a sure period of time (for instance every two years) or with a specific number of travelled kilometres or miles, like tires or filters.

Repairs and improvements [edit]

Repairs costs are completely unpredictable because they depend on the number and severity of car collisions, like dents repairing for example.^{[ commendation needed ]} These costs also refer to spare parts substitution due to malfunctioning. On this cost item information technology might be included too the parts bought to improve the performance or the aesthetic of the vehicle.^{[ citation needed ]}

Parking [edit]

The costs of parking include all the money the user needs to pay to park their auto. This applies ordinarily to motorcar parking lots, like in offices, public buildings, shopping centres or in the downtown; but also on the public space (normally in the inner role of some city) using parking meters. This toll might be relatively predictable, if the user for example has a monthly contract with some parking lot visitor, or if he rents a private parking space.

Tolls [edit]

A toll route, also known as a turnpike or tollway, is a public or private roadway for which a fee (or toll) is assessed for passage. Ordinarily this applies to motorways, bridges and tunnels but it might besides apply, like in some cities such as London or Stockholm, to gain admission to the city-centre. This price might be predictable if the user passes the tolled roadway, a divers number of times per month.

Fines [edit]

A traffic fine or traffic ticket is a find issued by a law enforcement official to a motorist accusing violation of traffic laws. Traffic tickets mostly come in two forms, citing a moving violation, such equally exceeding the speed limit, or a not-moving violation, such as a parking violation. These tickets well-nigh always imply the payment of a certain quantity of money.

Machine washes [edit]

The price of car wash varies according to the frequency users clean their motorcar, and with the toll of each cleaning.

Come across also [edit]

Economic science of car use
Effects of the car on societies
Externalities of automobiles
Personal finance

References [edit]

^ "Automobile costs for Usa; Average monthly cost per type". Automobile Costs Calculator. autocosts.info. April 2016.
^ ^a ^b Stepp, Erin (Apr 28, 2015). "Annual Toll to Own and Operate a Vehicle Falls to $8,698, Finds AAA". NewsRoom. American Auto Clan. Retrieved April 4, 2016.
^ The Auto Association (2014). "Motoring Costs". theaa.com.
^ The Auto Clan (2014). "Motoring Costs 2014" (PDF). theaa.com (PDF file).
^ The Automobile Association. "Machine running costs 2013/14". theaa.com.
^ Diesendorf, Mark, "The Effect of Land Costs on the Economics of Urban Transportation Systems" (PDF), Proceedings of Third International Briefing on Traffic and Transportation Studies (ICTTS2002), pp. 1422–1429, ISBN978-0-7844-0630-4, archived from the original (PDF) on 2008-07-19, retrieved 2008-04-15
^ ^a ^b Osborne, Hilary (2006-10-20). "Price of running a car 'exceeds £five,000'". The Guardian. London: Guardian Media Group.
^ Meek, James (2004-12-20). "The dull and the furious". The Guardian. London: Guardian Media Group.
^ IRS (December fourteen, 2018). "IRS issues standard mileage rates for 2019".
^ Simon Donohue, Business reporter (BBC) (27 August 2013). "How to crush price depreciation when choosing a new car".
^ John Fuller. "What is car depreciation?".
^ Lee, Thomas (4 October 2016). "Buy These 12 Cars Used, Non New Based on Report of 14 Meg Cars". Retrieved ii November 2016.
^ "Car running costs, Your guide to how we calculate machine running costs". The Auto Clan. 7 July 2014.

External links [edit]

Wikimedia Commons has media related to Car costs.

Automobile costs estimator for Commonwealth of australia
Auto costs calculator for Canada
Auto costs calculator for Ireland
Automobile costs calculator for the United Kingdom
Car costs calculator for the United States