What does it cost to own a car in Switzerland?

Buying a car is not the end of it - there are additional costs to consider. Sure, you quickly estimate the cost of fuel, taxes, and insurance and think: It's not that much. But have you also factored in variables such as depreciation or the costs of maintenance, service, and repairs? This article reveals the true annual car cost in Switzerland. Explore a wide range of rental cars like the BMW, Porsche, and VW at your fingertips.

Breakdown of Car Costs

Although the exact car costs vary individually for each vehicle and owner, they can still be calculated. Firstly, there are fixed costs that apply in any case and make up about 58% of the total car costs. These include:

• Depreciation and capital interest

• Vehicle tax

• Liability insurance, comprehensive insurance

• Additional expenses such as the vignette or breakdown coverage

• Garaging costs

• Vehicle care

Approximately 42% of the annual car costs are variable, including:

• Depreciation

• Fuel costs

• Maintenance, repairs

• Tires

In addition to fluctuating prices for fuel and services, these costs also depend on your mileage. If you drive a lot, vehicle parts wear out faster. They need to be replaced, and the risk of damage increases with higher mileage.

Most drivers underestimate the actual car costs per kilometer or per month, as revealed by a scientific commentary published in the journal Nature – by about 50%. The authors derive this general misperception, which is also applicable to Switzerland, from the results of a 2020 study conducted by the University of Mannheim, the RWI Leibniz Institute, and Yale University in the United States. 6,000 German households owning their own car were surveyed. Why is there such a significant misjudgment, and what are the specific amounts? We at CARIFY have taken a closer look.

Source: M. A. Andor et al. Nature 580, 453–455 (2020)

• The chart clearly illustrates the area where the estimation deviates the most from reality: depreciation and value loss. The actual monthly costs are de facto more than seven times higher than most people think. The depreciation of vehicles, especially in the first years after registration, is significant and accounts for approximately one-third of the monthly vehicle costs, on average, and over the ownership period.

• Repair costs also tend to be twice as high as vehicle owners expect. This category also includes regular services, inspections, and tire changes.

• Even the usually well-calculated deductions for taxes and insurance are underestimated by nearly half by car owners.

• The smallest deviations between estimated values and reality are found in the expected fuel costs.

Are you surprised? Perhaps you will reconsider whether buying a car is really a wise decision. After all, there are now diverse mobility concepts such as car sharing and car subscriptions available to fulfill all your mobility needs alongside public transportation. The fewer private households that acquire their own vehicles, the fewer cars are on the roads. This leads to reduced traffic jams, less car noise, and improved air quality – overall, only advantages.

Costs of a Private Car

Unlike tax-deductible company cars, you have to finance your private car along with all additional costs. It is good to know what awaits you after purchasing a car. If you want to calculate the car costs, it's best to start with the fixed amounts that are known, such as taxes and insurance. You can also determine the depreciation of your vehicle. There is a rough calculation:

Monthly depreciation = (Purchase price* minus selling price) divided by the number of months you owned the vehicle.

*The purchase price includes costs for additional equipment and any delivery fees.

Since it is difficult to estimate the selling price and ownership duration of the vehicle in advance, there are corresponding tables available online.

Repairs and maintenance pose a more challenging aspect: In addition to anticipated costs for annual inspections, seasonal tire changes, and regular vehicle inspections, unexpected damages can occur, including:

• Rock chips

• Engine or brake wear

• Accidents

• Tire replacement, and much more.

Even if your comprehensive insurance covers the damage, you often have a deductible, which increases your car costs. Additionally, insurance premiums rise in the event of a claim. Another point to consider in your annual car costs is vehicle care. Finally, most cars spend the majority of the day parked and taking up valuable space. Access to a free parking spot is not always available, so costs for a garage space or parking tickets may arise.

In addition to calculating the annual car costs, you can also calculate the costs per kilometer. In that case, the rule is: The higher the vehicle's purchase price, the higher the car costs per kilometer. Furthermore, the car costs per kilometer are significantly higher with low mileage, as the vehicle's acquisition costs are spread over only a few thousand kilometers per year. Keep this in mind when contemplating a car purchase. Do you really drive enough over the year to justify owning your own car?

Costs of a Car in a Car Subscription

Now that you know more about the actual annual car costs, the monthly rates for a car subscription won't seem so high anymore. Especially when you consider what is included in the package. You only need to calculate the car costs per year and divide the sum by 12, and you will know the monthly car costs you would face with your own vehicle.

With CARIFY, the monthly rate already covers:

• Taxes, insurance (liability, comprehensive, parking damage) without increasing premiums – optionally, the premium package even includes zero deductible

• Service, maintenance, repairs

• New tires, tire changes

• Swiss vignette (road tax sticker)

• 750 free kilometers per month (additional kilometer packages of 1,000, 1,750, 2,500, and 3,000 km can be purchased for an extra fee)

• Depreciation

You only need to factor in fuel, car care, and potential parking fees. In return, you have exclusive access to a well-maintained vehicle with good equipment throughout the subscription period.

How to Reduce Car Costs

A vehicle that you don't drive still costs you money. You can significantly reduce your annual car costs by only renting a car when you truly need it. Unfortunately, suitable car-sharing options are not available everywhere, and they are only suitable for short distances. Since you return the car to others after use, you must always remove all personal belongings. For daily or weekend needs, rental cars are a suitable option. However, they are comparatively expensive and only a viable solution for short periods. The cost-effective alternative if you need a car for a longer time is a car subscription. Flexible durations precisely cover every need.

Conclusion

Car costs in Switzerland are often underestimated and can lead to unpleasant surprises. If you want to save yourself the complicated calculations, opt for the worry-free package from CARIFY. "Cars for everyone" is our motto, and the offering is impressive: over 1,000 vehicles, 41 car brands, and attractive features.

With a car subscription from CARIFY, you always have your car costs in Switzerland in view, as all ongoing costs, except fuel, are already included in the subscription price. Thanks to our flexible durations starting from one month, you can get a car for a road trip or a family vacation and easily return it afterward. Even for longer periods, a car subscription allows you to keep yourcar costs for the year well within your budget and make precise calculations. And when your subscription period ends, you simply return the vehicle to one of our authorized dealers or exchange it for another model. To make it even more enticing, we do not require any upfront payments or initiation fees. You won't have to worry about hidden costs with us either. Our dedicated customer service team is here to assist you with any questions regarding your car subscription. We look forward to serving you!