Cost of driving a car

When I bought my Toyota Corolla Altis 1.6L Auto 10 years ago, the car cost me $54,088 with COE included. COE was $4,460. There was no financing cost for this car. After I scrapped my car, PARF/COE Rebates are $8,106.

Car Costs Amount ($)
Purchase price + COE 54,088
PARF/COE Rebates (8,106)
Total cost of car 45,982

The car was used for 10 years. Depreciation cost is $12.60 per day or $4,598 per year.

I had incurred costs to maintain the car and costs to repair the car amounting to $9,040 for 10 years. This works to $904 per year.

Let’s look at all costs in using my car on a year basis based on 2018 data.

Types of costs Annual costs ($) Remarks
Costs of car 4,598  
Repairs and Maintenance 904  
Car insurance 878 50% NCD
Car road tax 742 1,600 cc
Car Park/ERP 300  
Petrol 928  
Total 8,350  

All in the cost of driving a car was $8,350 per year. This works out to about $695 per month. This figure is quite conservative as I take public transport too besides driving a car.

Without a regular income, $695 per month is too much to bear.

Copyright © 2019, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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