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Fixed cost analysis: My car costs €5,000 a year - potential savings or a necessary evil? 🚗

I have been working intensively on my fixed costs recently and would like to openly discuss the topic of cars here today.

The car is one of the biggest items in my current living costs. Unfortunately, I can't do without a car due to my living and working situation, otherwise I would have switched to the so-called climate ticket a long time ago. This allows you to use all public transport within Austria for €1,300 a year (i.e. around €110 a month). Although it would be more like €180, as there would also be the odd seat reservation and coffee to go.

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I had also considered selling my $BMW (-0.29%) and using the proceeds to buy a young Hyundai or something similar. I would have put the rest in the depot. 😎

But I rejected this idea again. Because my car is very reliable, safe and, contrary to what you might think, very economical.

The long-term consumption is somewhere around 5 l/100 km, service costs are kept within limits as I bring the oil myself and there is no timing belt.

The only thing that is expensive are the summer tires, but here I could switch to smaller wheels, as I do in winter, and reduce the costs even further.

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What is the estimated maintenance cost for a year:

Insurance, tax and automobile club (ÖAMTC): ---1370 €/a

Diesel, vignette (toll), parking fees, washing: --- 1430€/a

Service, tires, unforeseen repairs: --- 2200€/a

Total costs: approx. 5000 € per year, i.e. around 415 € per month 🤯

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Where else can you save?

I only use the car for essential journeys, so I don't see much potential for savings here.

As mentioned above, I also believe that changing cars would not result in any significant cost savings on balance. Or am I missing something here?

That leaves the insurance companies:

I have already canceled the automobile club (ÖAMTC) for the next due date. That saves me €170 a year.

However, I think that towing without insurance cover can quickly become expensive. That's why I'll probably insure this service through my car insurance, where I understand it costs between €30 and €50 per year.

Another point concerns my fully comprehensive insurance. With an annual premium of around €450, it doesn't seem expensive at first glance, but considering the €1000 excess. In the event of damage, I question whether it makes sense

Because without fully comprehensive cover, I would have got away with up to €1450 in the first year, up to €1900 in the second year, up to €2350 in the third year and up to €2800 in the fourth year. Provided, of course, that nothing serious happens.

Here is an overview of benefits:

What do you think? Am I missing something or would you do something differently in my position?

I look forward to your opinions and assessments.

23 Comments

Eselai@DonkeyInvestor

It's simple: change your living and working situation. You might even earn more, save on your car and do your bit to protect the environment 👍

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Kate🦋@Iwamoto

@DonkeyInvestor is really not possible, but thank you, or rather I don't want to make any major changes to my work. A few more years and I'll get out. 🤓

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robo@r0bs1

isn't the climate ticket also available for your federal state?

we have the klimaticket tirol for 300€? per year
and all longer journeys are then looked for at blablacar or taken by train if that works out (actually everything always works out)

of course i can't estimate whether your long journeys would work out for you!

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Maximilian@Max095

My car is quality of life for me

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Kate🦋@Iwamoto

@Max095 Is this a small Hyundai?

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Maximilian@Max095

@Iwamoto I'm generally interested in driving in general.

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Tom@Garfield204

Switching cars could save you a lot. At least here in Germany, some models are much more expensive to insure than others. I compared my estate car at the time and found differences of up to €300 in liability insurance alone with identical engine data and bodywork. Repairs are also much more expensive with some manufacturers than with others. BMW is one of the more expensive in both cases. The tax may also be reduced, maybe a smaller motorized car will do if you like it (I don't know how and whether you pay motor vehicle tax in AU). In addition, check whether you really use the insured KM or actually drive much less, there can also be a great savings potential. The same applies to the group of drivers, if more people than just you are insured, do they really have to be insured? Do they really use the car? And last but not least, my insurance company has a telematics tariff, where a small device monitors my driving behavior such as heavy braking, sharp bends, rapid acceleration, etc. Just things that are riskier in traffic. I'm not allowed to pay more than without the telematics, but I can save up to 30% by driving well, which is currently 24% for me.
That's what I can think of.
For Germans, if your car is compatible, just fill up with E10 if it's a petrol car, that also saves a bit over the year. At least I get further with E10 than with Super for my fuel budget.

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Cekay@CMustermann

I take a more differentiated view here and am already a hardcore saver with a savings rate of over 50%.

We lived without a car for a while and to be honest: Never again without one. It's freedom to be able to go wherever you want, whenever you want, with luggage, pets and friends. Shopping without a car is terrible. Traveling across the country by train is fine, but the last mile by bus sucks. Taking the train to the plane is always a game of fire and drudgery - taking the car is totally relaxed.

The only thing you can consider is another car. BMW 3 Series are expensive because they are often driven by less cautious drivers. That drives up the price. Mazda and the like are cheap.

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wealth_builder_1994@wealth_builder_1994

If it's reliable and economical - keep it. If you were to get a cheaper one, how much would you save per year? 1200€ ? That's what.....

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Nom@user28461

Well, what can I say, I got my driver's license in 2008 and haven't bought a car since then. Renting, borrowing privately, taking a ride has worked so far - my depot thanks me.

You really have to prioritize, at least until the deposit is big enough. Doing without is simply an important part of wealth accumulation that many people criminally neglect.

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Romano81@Spare-Froh

As far as I've seen, the BMW is already a few years old.
Have you ever thought about switching to partially comprehensive cover? As a rule, this covers everything except self-inflicted damage.

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Olli@EisenEnte

How many kilometers does the car have on it by now? The 2019 diesel is euro 6, so you have to be very careful with the oil. It cokes up relatively quickly in the intake tract as it is, and if you then use an oil that is not ideal, the problems will get worse over time. What is it still worth in Austria? How much do you drive per year? A petrol engine might be cheaper 🤷

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Kate🦋@Iwamoto

@EisenEnte I'm now at almost 150,000 km. I use this oil here https://amzn.eu/d/9jOi13r I suspect that I could still get €10,000 for the car, maybe a bit more with a lot of patience and effort. I drive around 20-30,000 km a year. At the time I really wanted a gasoline car, but there are very few of them in Austria and they are more expensive on the used car market.

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Olli@EisenEnte

@Iwamoto The oil is definitely good. Otherwise you would already have problems. The intake area will still become a problem sooner or later, especially if you already have so many kilometers on it. The problems with modern diesel vehicles usually start there 😐
If you notice slight jerking at some point at constant speed and low load, that's when it starts. Either sell it while it still fits or have it cleaned at great expense. The swirl flaps will probably be broken and most garages will sell you a completely new intake duct because it's cheaper than repairing it.
Petrol engines are probably more expensive for you because the fuel is cheaper than diesel, right? At least that's what I often notice when I'm in Austria, that unlike here, diesel costs at least the same as petrol.

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Walter S.@Roots

Good topic...
I can't (yet) do without a car...
That's why my mobility costs come last...
With all other running costs, however, I have already been able to save a lot with a radical change...

The only questions you should answer yourself:

is it possible without a car, even in perspective
And
How much more income do I have with the car?

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Alfred E.Neumann :-)@Papiertiger

At least someone who provides realistic figures for the car. You forgot the loss of value + acquisition costs (of which the portability costs).

If car / driving has no emotional value, take the cheapest used car and TK insurance. Then it will just be reducible to 200-300€ p.m. incl. opportunity costs.

Personally, I just see it like this: if I'm working ~1 month a year just for the car, it should be reasonably nice and I shouldn't have to worry about it at all.

Now I might get stoned again. I have a car subscription / leasing MG E- car 320€ per all incl. tire maintenance etc. E xkl. electricity (15k km p.a.). + 4-9 € electricity 100/km. = ~400€ p.M. and no matter what is just drop it off at the garage. So round about 32 cents / per km.

Of course I could have bought a used car for 15-25k.
The liquidity is of course invested.

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Cekay@CMustermann

@Papiertiger I think that's completely fair. There are a few truisms that are simply not true across the board. For example, this "renting is giving money to the landlord" - yes, but if you've always moved every two years, as we've done until now, the additional costs of the purchase alone would have exceeded the rental costs.

It's the same with cars. There is a point at which your own time and mobility security are more important than "paying off" a used car and then owning it. As arrogant as it sounds, €400 per month is no longer a major expense for many people here. That may be different for the general population and I am aware of my privilege, but you can seriously think about it.

We were able to take over a very good used 2018 Mazda from the family, practically new with 8,000 km, which is more than enough for us. I don't think we'll ever give it up, it's more likely to become a second car or something.

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Joost K.@Joostkroes

So wait. If you could get rid of your car, you would get
- 450 eur / month freed up - the cost of alternative transportation
- A free workout each day, meaning you could stop allocating time/money for sports/exercise, if you so choose.

Because that amount of money could potentially buy you half a day off -every week- or a large extra amount to invest or to spend on actual wishes.

That being said
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Currently my (NL) car costs me about
150/month in depreciation + repair cost (estimate)
150-200/month in fuel
47/month in taxes
43/month in required insurance

making it 390 - 400. For a relatively cheap car (a secondhand 308 I was able to purchase from a family member at a lovely 7.000 eur.). In about 5 years, which is less than the expected economical lifetime of this car, I'll have paid down the complete depreciation to myself by placing it in a high-yield savings account to at least match inflation.

I can save a bit on expenses by driving less and more economical, buying fuel in germany (which is 5 km from here, so combined with a groceries run it's worth it) and making sure I compare new insurances once each year.

A fun way to make cycling 'feel' better is to calculate your average cost /km for your car and translate that to how many minutes you need to work for it. At short distances, the time spent cycling < the time spent driving + the time spent working to pay for the drive.

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Alfred E.Neumann :-)@Papiertiger

@Joostkroes Captain obvious 🫡

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Paketknecht@Paketknecht

You've forgotten the depreciation in your fixed costs. This doesn't come directly out of your account, but it is a cost that arises through use, because at some point you will need a new car. And this item in particular is enormous for some people, including you with a fairly new BMW. I drive a 16 year old Toyota, bought it for 6k, in 2 years I'll sell it after 10 years and 100tkm for 2k, that's 400€ depreciation per year.

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Kate🦋@Iwamoto

Since it has been discussed in some comments, I would like to add that, as far as I know, in Austria, unlike in Germany, motor vehicle liability insurance premiums are not based on model-related type classes according to accident and damage statistics.

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Thomas K.@KOPPE

@Iwamoto Have you ever thought about leasing offers?

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MEMO@MEMO1993

Company car the best there is 🤟

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