The Costs of Owning a Car per Year

Ever wondered how much your car actually costs you per year? It's not just about the fuel. Insurance, taxes, maintenance, and depreciation all play a role in the bill that your faithful companion serves up each year.

While you might have an eye on monthly costs, the annual expenses can still surprise you. In this article, we'll take a look at what you're really paying – and how you might even save.

From vehicle tax to unexpected repairs, we cover all aspects that affect your wallet. Get ready for valuable insights that will help you make the most of your budget.

What does a car cost per year?

Overview of Fixed Costs

When you own a car, you have to account for a range of fixed costs that occur annually. These fixed costs are independent of how often or how far you drive. The most important fixed costs include:

• Vehicle Tax: The amount depends on the type of vehicle, engine, and emissions.

• Car Insurance: It is divided into liability and optionally comprehensive or partial insurance.

• MOT and emissions test: The main inspection (MOT) and emissions test are due at regular intervals.

• Depreciation: A car loses value from day one; these costs are often underestimated.

The following table provides an overview of the average annual fixed costs:

Calculating Variable Costs Correctly

In addition to fixed costs, the active use of your car incurs variable costs, which depend on your individual driving behavior. These costs include:

• Petrol or diesel: Fuel consumption depends on the distance driven and the type of vehicle.

• Maintenance and repairs: Regular service intervals and unforeseen repairs can drive up costs.

• Tires: Tire wear depends on driving style and road conditions.

• Parking fees: Especially in urban areas, parking fees can add up significantly.

For a realistic calculation of variable costs, you should consider these points and analyze your driving profile.

Monthly Cost Estimation

To keep track of ongoing costs, it is useful to extrapolate both fixed and variable costs on a monthly basis.

The table below shows an estimate based on the average annual costs for a car with a purchase price of 35,000 CHF and an annual mileage of 15,000 kilometers (equivalent to a compact car or mini SUV):

Based on this assumption, the total cost of a car amounts to approximately 10,495 Swiss Francs per year. Keeping a mileage log or using an app to track your expenses and identify potential savings can be helpful.

Car Insurance: Costs per Year in Switzerland

When looking at the annual costs of your car, insurance costs in Switzerland are a significant component.

Liability Insurance

Liability insurance is mandatory for every vehicle owner in Switzerland and covers damages you cause to others with your vehicle. The amount of the premium depends on various factors:

• Type of vehicle

• Engine power

• Age and gender of the driver

• Place of residence

• Years without claims

It makes sense to use comparison portals to find the best deals. However, cheap doesn't always mean good. Pay attention to the coverage amount and the conditions of the insurance.

Comprehensive or Partial Insurance

In addition to liability insurance, you can further insure your car with comprehensive or partial insurance. Comprehensive insurance is more comprehensive and recommended if your car is new or very valuable, as it also covers damage to your own vehicle due to self-fault or vandalism. Partial coverage insurance, on the other hand, covers damages such as theft, glass breakage, fire, or natural disasters.

The costs vary greatly:

• Depending on the vehicle model and age

• Depending on the deductible you can choose

• Depending on the extent of insurance coverage

In general, the premiums for comprehensive insurance decrease with the age of the vehicle, as the value of the car decreases. Look out for possible discounts, such as including safety features or a garage space for your vehicle.

Maintenance and Operating Costs

When it comes to owning a car, you might first think of petrol and taxes – but maintenance and operating costs are equally important. They not only ensure the safety and reliability of your vehicle but also influence its long-term value. The influence of these items on your annual total expenses should not be underestimated.

Maintenance Costs in Switzerland

Maintenance costs in Switzerland encompass a range of services that ensure the proper condition of your car:

• Oil change

• Replacement of wear parts such as brake pads and tires

• Inspections according to manufacturer specifications

• Possibly also accident repairs

A crucial point is the intervals at which maintenance is carried out. Various factors such as vehicle model and annual mileage affect operating costs. Here's a rough guideline:

It's worth comparing different workshops and keeping an eye out for current offers.

Fuel Costs in Switzerland

Fuel costs can vary significantly on a monthly basis and depend on:

• the current oil price

• your personal driving style

• the efficiency of your car

• the type of fuel

Switzerland tends to have higher fuel prices compared to other European countries. In 2023, average prices for petrol were around 1.75 CHF per liter and for diesel about 1.92 CHF per liter. With an annual mileage of 10,000 kilometers, this results in significant expenses. The following table illustrates fuel costs assuming a consumption of 6 liters per 100 kilometers:

To reduce fuel costs, you could pay attention to more economical driving or look for alternatives such as carpooling. Choosing a more efficient vehicle can also lead to significant long-term savings.

Vehicle Tax in Switzerland

Vehicle-related taxes represent a significant expense for car owners. In Switzerland, vehicle tax is based on various factors such as the weight of the vehicle, the canton where you live, and environmental compatibility. Especially with the cantons, there is a wide range, as each canton sets its own tax regulations.

• Environmentally friendly vehicles are often tax-favored

• Heavy vehicles, on the other hand, incur higher taxes

To calculate your annual vehicle taxes, it is best to contact local authorities or use appropriate online tools provided by the canton. This makes it easier for you to integrate these fixed costs into your annual budget.

Fuel Tax

In addition to vehicle tax, you must also consider fuel tax, which is already included in the price at the gas station. Switzerland imposes relatively high taxes on petrol and diesel. These indirect taxes affect your fuel costs and should therefore not be overlooked in your calculations.

Avoid Unnecessary Tax Costs

There are ways to reduce the tax burden:

• Choose a vehicle with lower CO2 emissions

• Check if there are tax breaks for an electric or hybrid vehicle

Important to Know

It is important to consider that tax changes are location-dependent and dynamic – changes in tax law can affect your annual costs. Especially in the age of e-mobility, there are more frequent changes in this regard. Therefore, it's crucial to pay close attention.

Other Annual Costs

Being a car owner also means taking care of costs that are not always immediately apparent. Let's shed light on the other annual costs that can also put a dent in your budget.

Parking Fees

Over the course of a year, parking fees can take a considerable portion of your overall car expenses, especially if you live or work in a metropolitan area. Tariffs vary depending on location and can range from visiting a paid parking zone to renting a private parking space.

The amount and frequency of parking costs can be influenced by:

• Using public parking lots or garages

• Choosing parking lots with lower fees

• Utilizing Park & Ride offers

Toll Fees in Switzerland

In Switzerland, toll fees apply for the use of highways and certain tunnels. If you buy the vignette for highways, it covers a whole year and its costs are fixed. However, prices for individual tunnels or mountain passes vary and should be kept in mind as they can affect your travel plans and annual expenses.

Some key facts about toll fees include:

• Annual vignette costs for highways

• Individual fees for specific routes

• Seasonal differences in toll costs

Annual Costs of a Car Subscription with CARIFY

Opting for a car subscription with CARIFY offers a fresh perspective on mobility. A subscription model provides you with flexibility and transparency in cost structure. Instead of being entangled in individual costs, you focus on a monthly rate that covers almost all expenses.

What's included in the car subscription?

Unlike traditional car ownership, the monthly rate with CARIFY includes various services:

• Insurance

• Taxes

• Maintenance and service

• Tire changes

• Monthly mileage package (750 km, 1000 km, 1750 km, 2500 km, 3000 km)

No maintenance costs or insurance comparisons are necessary because CARIFY takes care of everything.

How much does the car subscription cost?

The price of a car subscription varies depending on the chosen vehicle and duration. Here are some examples of subscription costs for different vehicle classes and durations:

Advantages of Car Subscription

The advantages of a car subscription are comprehensive. You benefit from predictable costs and don't have to worry about resale. Enjoy new models and switch cars when it suits your needs.

With CARIFY, you also have the option to book additional services to further enhance your driving experience:

• Additional mileage packages

• Additional driver option

• Child seats or navigation systems

Budget Planning with Car Subscription

The transparency of the subscription model allows for easier budget planning. With the fixed monthly rate, expenses are predictable and manageable. This allows you to efficiently plan your budget and have more control over your monthly expenses.

Conclusion

With the car subscription from CARIFY, you have the costs fully under control. You not only enjoy the flexibility to change the vehicle at any time but also benefit from a transparent cost structure. Forget about unforeseen expenses for maintenance or insurance – everything is included in your monthly rate. Whether you opt for a compact car or an SUV, the predictability of your budget remains unaffected. Remember that you can customize your subscription with additional options to tailor it perfectly to your needs. The car subscription is thus a smart solution that saves you worries and gives you freedom.

(Frequently Asked Questions) FAQs:

What are the annual costs of a car subscription with CARIFY?

The annual costs of a car subscription with CARIFY depend on the chosen vehicle model and the duration. The monthly rate covers insurance, taxes, maintenance, service, tire changes, and storage. Additional services may increase the costs.

What is included in the monthly rate of a car subscription with CARIFY?

The monthly rate includes comprehensive insurance, vehicle taxes, maintenance, service, as well as tire changes and tire storage. This provides a transparent cost structure and facilitates budget planning.

Who benefits most from a car subscription?

A car subscription is particularly advantageous for individuals who appreciate flexibility, do not desire long-term commitments, and prefer predictable costs. It is also suitable for those who wish to change vehicles regularly.

Can I switch vehicles with the CARIFY car subscription?

Yes, the car subscription model offers the flexibility to switch vehicles to adapt to changing needs. The conditions for this are defined in the respective subscriptions.

What happens if I drive more kilometers than agreed upon in the CARIFY car subscription?

If you drive more kilometers than agreed upon in the subscription model, additional mileage packages can be purchased. The costs for this vary depending on the subscription.

In conclusion, whether you opt for traditional car ownership, carefully calculate the costs, and maintain your vehicle or choose the convenience and flexibility of a car subscription, understanding the various aspects of car expenses is crucial for effective financial planning.

Have more questions? Here are our FAQs.