Car running costs: what to include and how to work out the cost per year and per kilometre

• Running costs include energy, servicing, wear-and-tear parts (brakes, shock absorbers, clutch), tyres, insurance and fees, as well as depreciation. Depreciation is often one of the biggest items, yet it never shows up on your bank statement.
• To get the cost per kilometre, divide the annual total of all items, including depreciation, by your annual mileage. Spending on fuel or charging alone significantly underestimates the cost per kilometre.
• Annual depreciation = (purchase price − cautiously estimated resale price) ÷ number of years of ownership.
• Because of its taller body and higher weight, an SUV uses more energy than a comparable estate. Bigger wheels make tyres more expensive. Diesel pays off mainly on long journeys, a plug-in hybrid only with regular charging.
• With a used car, keep a reserve for the first service and unexpected repairs on top of your regular budget. With cars from Carvago, the customer knows the technical condition from the CarAudit™ inspection before buying.

You start thinking about car running costs the moment you have three similarly priced listings side by side. One car has a more economical engine, the second smaller wheels and the third a more convincing service history. The family budget isn't only affected by everyday driving, though. It also includes replacing tyres, a major service and the part of the purchase price you won't get back when you sell. That is why you should compare cars at the same expected mileage and the same period of ownership. How to choose the right type of car is described in the article on how to choose a family car.

The full picture comes from the total cost of ownership, meaning running expenses including depreciation. ADAC's methodology is built on the same principle: it adds up total costs from depreciation, operating costs (mainly energy), fixed costs and servicing including tyres.

The calculation has three steps:

1. Add up the annual spending on energy, maintenance and wear, tyres, insurance and other regular items.
2. Add the average annual depreciation and any financing costs.
3. Divide the result by your annual mileage.

Annual costs = energy + servicing and repairs + tyres + fixed costs + depreciation + any financing costs

Cost per kilometre = annual costs ÷ annual mileage

Dividing the annual total by twelve gives you the amount to set aside for the car each month. Actual spending comes in lumps, though: a service one month, new tyres another.

Money in your account and the cost of ownership are not the same thing

If you buy with your own money, you pay the purchase price in one go. But only the difference between the purchase price and the amount you get when you sell belongs in the cost per kilometre. Anyone who counts the full purchase price and depreciation on top is counting the same money twice.

The same trap awaits with a loan. A repayment also includes paying back the borrowed money, which is part of the purchase price. The cost of financing is only the interest and related fees. Keep track of the full repayment in the family budget, but don't add it to the car's costs alongside depreciation.

Depreciation is the difference between what you pay for the car and what you later sell it for:

Annual depreciation = (purchase price − expected resale price) ÷ number of years of ownership

With a younger, more expensive used car, this difference often outweighs even a substantial fuel saving. An older car loses value more slowly but usually needs more repairs. A low purchase price therefore doesn't automatically mean cheap running.

You can estimate the future resale price from today's listings for the same model at the age and mileage your car will have when you sell it. The advertised price tends to be higher than the price the car finally sells for. So work with a figure from the lower end of the listings, not the most expensive one. If the purchase still makes sense with this cautious resale price, that is a good sign.

The energy cost combines three figures: mileage, consumption and the price of fuel or electricity.

For an electric car, calculate with electricity drawn from the grid, including charging losses. If you charge both at home and at public chargers, use an average price weighted by how much energy you charge where.

For a plug-in hybrid, it isn't enough to take the low combined consumption from the technical data. The result depends on how often you charge and how many kilometres you drive with the traction battery depleted. With short daily journeys and charging every evening, it works out much cheaper than on long trips without charging. On the motorway with a flat battery, it simply carries the battery around as heavy extra weight and uses more than a comparable petrol engine.

Compare two cars on consumption in the same kind of driving. Urban consumption for one and motorway consumption for the other will give a distorted result.

The manufacturer's service schedule sets inspections by time, by mileage or by whichever comes first. A car that covers few kilometres a year therefore needs to visit the workshop even if it has done only a few thousand kilometres since the last service.

Three groups of spending belong in the budget:

With a used car, servicing due shortly after purchase carries a lot of weight. A car just before a timing belt or clutch replacement will cost you more than a similar offer where the previous owner has already paid for it. The service history and the maintenance schedule for the specific engine therefore tell you more than the phrase "regularly serviced" in a listing.

A repair reserve is cash set aside, not a certain expense. When planning, it protects you from unpleasant surprises. When you recalculate after a year, replace it with the repairs you actually paid for, and don't count both.

Calculate with the price of a full set in the approved size and add fitting, balancing, seasonal changeovers and any storage.

Bigger and wider tyres tend to be more expensive. A low profile also cushions pothole impacts less, so both the rim and the tyre get damaged more quickly. A car on 19-inch wheels can therefore cost more to run than the same model on smaller wheels, even with the same fuel consumption.

Two seasonal sets don't mean double the spending, because each covers only part of the annual mileage and lasts longer. All-season tyres save on changeovers, but one set covers every kilometre.

For the annual budget, divide the price of a set by the number of years you will use it and add the services around it. On a car that covers little mileage, the age of the rubber often decides on replacement before the tread wears out.

A taller body and usually higher weight increase an SUV's fuel and electricity consumption compared with a lower estate. SUVs also often run on bigger wheels. So compare cars of similar size that can handle the same family tasks. The difference in running costs between an estate and an SUV is then what you pay for a higher seating position and more ground clearance, not for more space. Other differences between the two body styles are covered in the article on estate or SUV.

There is no ranking of powertrains from cheapest to most expensive. It depends on how you use the car:

An electric car doesn't need combustion engine maintenance, but you still pay for tyres, suspension, brakes and scheduled inspections.

What to compare in family car listings

Specific pairs show where the cost differences are hidden:

A more expensive offer with a major service already done and good tyres may cost you less after handover than a cheaper car where these expenses are still to come. Only the total shows which one to choose: the difference in purchase price, running costs over the period of ownership and the expected resale price.

Fixed items include compulsory third-party motor insurance, any comprehensive cover, parking, periodic roadworthiness tests and fees. Compare insurance quotes for the same level of cover and the same excess.

Keep one-off costs linked to buying the car separate and spread them over the whole period of ownership.

Fixed costs are divided among the kilometres you drive. A car that hardly moves therefore works out expensive per kilometre, even if you spend little on fuel.

You get the most accurate result by working out the costs for the whole period of ownership and only then converting them to a year and a kilometre. That way you also capture expenses that don't recur every year, such as a clutch replacement or a new set of tyres.

Average annual costs = table total ÷ number of years of ownership

Cost per kilometre = table total ÷ total mileage over the period of ownership

Fill in the same table for each candidate with the same mileage, period of ownership and type of use. Otherwise you are not comparing cars, but different assumptions.

• Comparing on fuel consumption alone. A fuel saving is easily outweighed by higher depreciation or more expensive servicing.
• Counting twice. The purchase price together with depreciation, full repayments together with depreciation, a repair reserve together with a repair already paid for.
• A budget without the first service. Maintenance the previous owner put off will show up in your first bills.
• The cheapest insurance policy. A lower premium often means a higher excess or narrower cover.
• An optimistic resale price. The calculation must still work if you sell the car for less than you hope.

You save the most at the selection stage: a sensibly sized body, a reasonable wheel size and a well-maintained car. Putting off an oil change, new tyres or brakes is just a postponed and usually higher expense.

What most often blows a used car's running budget is a technical fault the buyer didn't know about. Carvago puts every car through a CarAudit™ inspection with up to 270 checkpoints before sale. A technician goes over the technical components, runs diagnostics and a test drive, and checks the available information on the car's history and legal status. The customer knows the result before deciding to buy, and Carvago guarantees the condition stated in the CarAudit™ certificate.

A free extended warranty, which Carvago provides with every car, also helps against unexpected repairs. Carvago doesn't include problematic models from its Carvago Blacklist in its offer at all.

What's more, you don't have to narrow your choice to a handful of cars nearby. Carvago offers used cars from dealers all over Europe, so you can find the engine, wheel size and equipment that pay off in everyday running. Before sale, Carvago buys the car from the original seller, becomes its owner and takes on its risks. The customer buys directly from Carvago.

Does the time spent on the car count as a cost?

Don't include it in the household budget, which deals in money. But when comparing the car with other transport, it makes sense to factor in the hours spent at the workshop, at tyre changeovers or at the charger.

Should I include alternative transport during a repair?

Yes, if you pay for it. A hire car, taxis or tickets while the car is off the road are part of the cost of using it.

How often should I recalculate the budget?

Once a year is enough, plus whenever your mileage, charging habits or insurance change significantly. Gradually replace the original estimates with the expenses you have actually paid, and each new calculation will become more accurate.

• https://assets.adac.de/Autodatenbank/Autokosten/autokostenuebersicht_a-c.pdf
• https://www.adac.de/rund-ums-fahrzeug/autokatalog/marken-modelle/auto/suv-kaufberatung-2026/
• https://www.skoda-storyboard.com/en/models/octavia/first-sketches-of-the-innovated-octavia-take-a-look/
• https://euroncaprescuesheets.blob.core.windows.net/rescuesheets/Hyundai/Hyundai_TUCSON__SUV_2020_5d_GD_EN.pdf
• https://carvago.com/caraudit
• https://carvago.com/how-carvago-works
• https://carvago.com/car-delivery