1. The Cost of Car Ownership

2. Learning Objectives
To understand the true costs of maintaining and running a vehicle
To appreciate the benefits of comparing relative costs and taking a pro-active approach to managing money

3. Is it worth the money to own and run a car?
Car ownership
Is it worth the money to own and run a car?

4. The cost of car ownership
Estimate…
The typical costs of owning a car for 1 year
The cost of running a car per mile
(do not include the cost of buying the car)

5. What will I have to pay for?
What are the legal requirements for car ownership?
Car Tax
Insurance
MOT
What other things will you need to pay for?
Maintenance
Breakdown cover
Petrol
Other costs e.g. parking fees

6. Car running costs Expense £ Cost Insurance* 179.17 per month
Breakdown cover
6.67 per month
MOT (test only)*
55.00 fixed fee but can get it for as little as if you shop around
Road tax*
9.58 per month
Petrol
63.33 per month
Routine maintenance / repairs
33.33 per month
Other e.g. parking fees, tolls etc.
4.00 per week
* Required by law

7. The true cost of running a car
Per year = £
Per month = £314.00
Per mile = 63p
What might happen to the costs if you did more miles per year – try calculating 10,000 (remember you will need to recalculate your fuel costs)
Petrol costs would go up to £ so increasing total costs by £506.42
Whilst overall costs rise the price per mile falls to 43p per mile.

8. The cost of other travel options?
Calculate and then compare the cost of travel by car, bus and train to:
School
The local town
A major tourist attraction (decide as a group what it will be)
A major city
What happens if more than one person travels at the same time? Does it alter which is the cheapest option?
Could you walk or cycle to any of these destinations? What would the cost be then?

9. Environmental impact
Which form(s) of transport have the greatest environmental impact?
Do you think we should consider the environment when thinking about travel options?

10. Is it worth the money to own and run a car?
Car ownership
Is it worth the money to own and run a car?
Things to think about:
How much money you are likely to earn in the first few years after leaving school
The added cost of buying a car
The relative cost of alternative transport options versus the convenience of a car
The environmental cost of owning a car – do you care?
How many taxis you could take for the amount of money spent on running a car – do the sums make sense?