A Personal Finance Blog for Malaysian: Real cost of vehicle ownership. Not that low as you think...

Saturday, June 11, 2016

Real cost of vehicle ownership. Not that low as you think...

What are the real cost of own a vehicle (passenger car)? There are many in the list, including but not limited to

  • Depreciation (the newer (and/or less common) the car, the higher the depreciation)
  • Finance charges, or opportunity cost (if you pay cash)
  • Service and Maintenance (including road tax and insurance)
    • Regular
    • Non-regular (or yearly)
  • Petrol
  • Parking

This table show the Cost/KM of using for a vehicle with depreciation of RM15,000 (many new car will have that amount or more), excluding finance charges and parking.



If you are in the category of low utilisation rate, it is better you don't own a car yourselves but just pay per use.

This working may need to improve as cost of repair (^Total Maintenance) tends to goes up higher with high usage as compared to low usage.