Car Cost Calculator India 2019

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car cost calculator

Nowadays, it’s much easier than ever to own the car of your dreams with a large number of varieties available. It doesn’t matter if you want a cheap & reliable car or one that feels luxurious and acts as a status symbol, car manufacturers launch so many cars every year that you’ll often find a perfect match without looking too far. (Use the car cost calculator above to find out the actual cost of your car before budgeting for it!)

Add to this the variety of convenient financing options available to us these days, purchasing a dream car has become super-easy and affordable for people belonging to all economic strata.

For most of us car-buyers, the purchase price of the car is what we really care about before buying it. However, we ignore one of the most important factors to consider when buying a car when doing so.

This factor is the total cost of ownership of a car. You see, a car is not only a depreciating asset but also a partial liability as it takes money out of your pocket every month. It’s crucial to weigh these costs when hunting for a car using a auto cost of ownership calculator as it pays off in the long run in terms of money saved.

Some cars have very high mileage, saving you fuel money in the long run whereas others have very low maintenance costs, doing the same. Some cars, on the other hand, have very high recurring maintenance costs and insurance costs that make the cars more expensive in the long run as compared to other variants with a higher initial purchase price!

What is Cost of Ownership of Car

The first step to buy a car is to use a car cost calculator and finalize your budget. Once that is done, it’s up to you to find all the cars that fit your budget and then pick the best one among them based on features, purchase price, aesthetics, and other factors.

However, when searching for cars that fit your budget, it’s important to use a car cost calculator to calculate the total cost of ownership of the car and compare that number against your budget.

The purchase price of the car is not the actual money you’d be investing in it over the course of its life. There will be many other additional and recurring costs that you’ll incur and the total cost of ownership of the car is essentially the sum total of all these expenses.

Calculating the total cost of ownership of a car with a car cost calculator gives you a yardstick to measure similarly priced cars against each other with a much more holistic and practical approach.

It also protects you from any surprises in the future that you may not have accounted for in your initial budget. (For eg, some cars use much more expensive tires than others which adds to the maintenance cost over the long run)

These costs include the registration cost of your car, insurance costs, maintenance, fuel, road tax, car loan interest if you’re buying the car using a car loan and more.

You probably would have guessed by now that it’s impossible to calculate the aforementioned costs without any error. Don’t worry, you only need a rough estimate to make a much more informed decision when buying your new car!

Breaking Down Cost of Ownership of Car

The total cost of ownership of a car can be broken down into the following costs:

Purchasing cost of car:

This is also known as the on-road price of the car. Some people use the ex-showroom price of the car when comparing purchase cost of cars as their location of purchase is variable. But in all practical cases, this cost is the total amount you’ll pay after taking into consideration all discounts, offers, exchange deals and such.

Many of us make the mistake of assuming that this is the final cost of ownership of the car we’re buying. Watch out! This is actually the first among many others as given below:

Cost of extra accessories:

A majority of car owners love adding more accessories to their car in order to improve their experience. Examples of such accessories include stereo systems, LED headlights, alloy wheels, car upholstery and more. If you plan on adding these components to your car in the future, make sure you check their prices and compare them against your budget.

Depreciation:

Cars are technically depreciating assets. Their value decreases over time. In fact, the value of a newly bought car drops by ~10% as soon as it hits the road! And after the first year of owning the car, its value drops by as much as 40% in some cases. Although this depreciation is not an extra cost, it’s important to be aware of it as it can help you compare the resale value of your purchase. A car that has higher resale value is usually a much better purchase than one at the same price but at lower resale value. Also, if your car is a business expense, you can use this depreciation in your books!

Cost of Petrol/Diesel:

“Kitna Deti Hai?”

This is one of the most iconic statements made by us Indians whenever we talk about any vehicle. And it’s rightfully so!

Fuels to run your car will be one of the most basic and biggest costs that you’ll incur throughout the lifetime of your car. It’s crucial to take this into account in your budget and compare it against all your preferred car models. It’s safe to assume that the cost of petrol/diesel in India will steadily rise in the future as it has done in the past. Most of us buy a car to facilitate our daily commute to work. That’s 25 days a month, 12 months a year! Every rupee that you can save on fuel will pay off in the long run!

In some cases, the cost of fuel may even equal the cost of your monthly EMI payment!

Insurance:

Getting your car insured is mandatory in India as per government mandate. Every car/bike owner has to purchase insurance and renew it year after year without exception. The cost of your car insurance may vary between 3%-4% of the booking price of the car. As a general rule of thumb, the higher the cost of insurance and greater its coverage, higher will be its monthly payment. Insurance costs in India have been rising steadily, so it’s important to weigh his cost in your total car cost calculation.

Loan Interest:

Car loans have made purchasing a car affordable for people in all types of income groups. However, they also increase the cost of the car due to interest on the loan. This interest rate can be as high as 14%!

Breaking down the total cost of the car into affordable monthly payments comes at the cost of increasing the total amount paid by up to 14%.

This is why it’s critical to include this cost in your calculations if you’re going for a financing option for your car. If you’re buying the car with upfront cash however, you may skip this step.

Scheduled and unscheduled maintenance cost:

This is yet another unavoidable cost of owning any vehicle. Cars need regular servicing and the occasional fixes in case something breaks down. And cars break down all the time!

This cost can be broken down into two types, scheduled and unscheduled maintenance costs.

Scheduled Maintenance Costs: Your car’s dealer should be able to give you a fairly accurate estimate of the scheduled maintenance costs your car model will incur in the future.

Unscheduled Maintenance Costs: A good technique to get an estimate on this cost is to talk to other car owners of your car model and their experience with the car. Fixing unexpected breakdowns is costly! It pays to be aware of these costs when picking your dream car.

Taxes:

Taxes are another important recurring and mandatory cost that you will incur. The truth is, you’ll be paying a good amount of money as RTO tax, octroi etc. Also, these taxes are revised by the govt and may increase in the future. It’s best to talk to your dealer to know these costs in advance.

Cost of Ownership of Car trends in India

The cost of ownership of a car in India is going up due to ever-rising fuel prices. From April 2020. Cars running on Diesel – MUV, SUV, and Sedans will no longer be running in India. With decreasing gaps between petrol and diesel, customers are unable to escape from the price changes in fuel.

The price of Vehicle and the manufactured parts have been decreasing in the recent past, but with the rise of fuel prices cost of ownership of the car hasn’t reduced. The cost of ownership has been increasing tremendously as compared with cost of previous years.

You may not believe, but fuel cost accounts more than 85% of the average cost of the vehicle when compared with other factors such as repair and maintenance cost, tyre replacement, part replacement etc.

We are all aware of the road conditions in India. Did you know this devastating condition contributes to the increase in the Total Ownership Cost of a car?

The traffic that we get stuck in for hours puts extra pressure on vital car parts which eventually results in internal damages. That’s your answer to why your car needs servicing after every few months.

All these factors led to your Unexpected Expenses in your car.

Some parts of your car are extremely vulnerable to factors such as wear and tears, battery, clutch, radio components, etc.

Calculating the Cost of Ownership of a Car using a car cost calculator?

Well, let’s dive into how you can calculate the cost of owning your car. You must take into account every single factor of the total expense that you will be spending on your car in the coming years.

Car is an asset. You need to take care of it, preserve and maintain it by spending money from your wallet.

When you are affirmed to buy a car keep in mind all the expenses you will be bearing in the coming years.

But Hey! Don’t worry! 

With the help of our total car cost calculator, you can calculate the cost of ownership of a car in just one click.

Enter all the details asked in the auto cost calculator, and boom you have the cost you should be ready for before buying a car.

How to reduce the Total Cost of Ownership of a Car?

You may be surprised by the results of our vehicle expense calculator for a car you are looking at. What if I tell you the cost can be reduced?

Consider the below factors for decision making when trying to reduce the cost of ownership:

1. Vendor-Selection

Selecting a vendor can be time-consuming. The amount you will be spending on bidding and finally approving. 

Consider ordering online. The online process is less time consuming as compared to visiting every vendor personally. You won’t be charged with any annual fee.

2. Make a Purchase

Make sure when you are purchasing the car you check the taxes and fees applicable on the car you are planning on purchasing. Is it exceeding your budget?

3. Shipping 

Planning to get your car shipped? Remember the charges for packaging and shipping will be included in your cost of ownership. Is there a way to avoid shipping your car?

4. Keep your car longer and keep it maintained

The longer miles you cover with one car the better your average annual cost of driving gets. Caution: Keep it maintained. If your car needs maintenance/repair continuously the cost of ownership keeps on increasing.  

5. Keep saving for your future Car

Yes! Don’t be surprised. Can you drive the same car for 20 yrs? So why not be prepared for the next purchase. 

Even if you don’t buy a car it is the way you are saving. You can direct the money to an investment. Here are some investment tips.

Keep following Bachat to keep saving and living frugally.

What is a car cost calculator?

For most of us car-buyers, the purchase price of the car is what we really care about before buying it. However, we ignore one of the most important factors to consider when buying a car when doing so. When searching for cars that fit your budget, it’s important to use a car cost calculator to calculate the total cost of ownership of the car and compare that number against your budget.

What is the total cost of ownership of a car?

The purchase price of the car is not the actual money you’d be investing in it over the course of its life. There will be many other additional and recurring costs that you’ll incur and the total cost of ownership of the car is essentially the sum total of all these expenses.

How can I reduce the cost of ownership of my car?

You may be surprised by the results of our vehicle expense calculator for a car you are looking at. What if I tell you the cost can be reduced?
You can do it by:
-Smart Vendor Selection
-Estimating maintenance costs in advance
-Avoiding shipping costs
-Searching for discounts and exchange deals
-Hunting for the best financing options

How are the costs of cars trending in India?

The cost of ownership of a car in India is going up due to ever-rising fuel prices. From April 2020. Cars running on Diesel – MUV, SUV, and Sedans will no longer be running in India. With decreasing gaps between petrol and diesel, customers are unable to escape from the price changes in fuel. The price of Vehicle and the manufactured parts have been decreasing in the recent past, but with the rise of fuel prices cost of ownership of the car hasn’t reduced. The cost of ownership has been increasing tremendously as compared with cost of previous years.


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