This is how much your car costs you per month

Alyson - October 18, 2023

Mileage cost

Cars are an important part of everyday life in Switzerland, but the costs associated with owning a vehicle can add up quickly. To keep track of your finances, it's crucial to understand the costs your car incurs and budget accordingly. A helpful way to visualize the costs is to calculate the different types of costs associated with a car.

The different types of costs

The calculation of the cost of your car is composed of fixed and variable costs:

Fixed costs

The fixed costs of your car include all the fixed expenses you have for owning your vehicle. These include, for example, interest on capital, road tax, liability insurance and garaging costs.

These costs are not directly related to how much you use your car. For example, you have to pay the amount for your liability insurance regardless of whether you drive 10000 kilometers a year or 30000.

Variable costs

The variable costs depend on how much you drive and include for example depreciation, fuel costs, tires, service and repairs.

For example, your tires wear out faster and you have to replace them more often if you drive more.

The composition of expenses

To illustrate the composition of expenses, the Touring Club Switzerland (TCS) has created an overview for an average car that shows how car costs are composed.

Fixed costs

On average, fixed costs account for around 58 percent of car costs: The largest fixed cost, at 27%, for a car is amortization. The amortization is the amount due for installments plus savings needed to buy an equivalent vehicle.

The second largest fixed cost item, at just under 14%, is garage costs. This includes, for example, rent for a dedicated parking space or parking fees in the city.

Variable costs

The largest variable cost item is fuel costs. This means that the cost of your car is highly dependent on the current price of gasoline. The depreciation of your car is also not negligible, accounting for 10% of the variable costs. A new car loses the most value in its first year of operation, and about 10% per year thereafter. Keep that in mind when you decide to buy a brand new car.

This is how much the Swiss spend on their car per month

Since these costs for your car don't all occur regularly, but are spread out differently over their useful life, it can be challenging to include your car in your monthly budget planning: According to the 'Car Cost Index', people in Switzerland spend an average of 1100 francs on their car - an amount that is often underestimated as certain expenses are easily overlooked or forgotten.

Optimal cost control with a car subscription

If you want to drive a car and at the same time keep track of all your expenses, a car subscription from CARIFY is the perfect solution! With a fixed monthly amount, you can use a car with all costs already included. Taxes, service, repairs and insurance are all included in the monthly subscription price! The only thing you have to pay additionally is the gasoline.

So you always have all your expenses in sight and can easily create a budget for the next months.

Discover our diverse selection with over 1000 available cars here.

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