Talking about car expenses is a common topic among friends and family, especially when it comes to the cost of gas eating into monthly budgets. And their frustrations make sense—transportation costs are the second biggest expense in U.S. households, consuming about 10 to 20% of a household’s income.
I can definitely relate to these concerns. Car expenses have been a significant drain on my household budget for years. For more than a decade, I’ve had a long daily commute of 60 miles each way, totaling 120 miles a day. Over time, these miles add up, and it’s no wonder I’ve gone through three different cars specifically for work.
Next time you talk about car expenses, consider if gas prices are the only factor or if there are more contributors to the real cost of driving per mile. Keeping a car running smoothly involves more than just gas. You’ve got oil changes, new tires, fluid changes, unexpected repairs, and depreciation of the vehicle itself.
Let’s break down the actual cost per mile of my daily commute using my current car, a used 2011 Chrysler 200:
1. **Gas/Fuel:** Gas is a major expense because it’s a constant, everyday cost. My car gets 31 miles per gallon on the highway, where most of my commute occurs. At $3 per gallon, the cost is:
– $3 per gallon / 31 MPG = $0.10 per mile
2. **Oil Changes:** Regular oil changes are crucial, especially with frequent long commutes. I follow my car’s recommended maintenance schedule of every 8,000 miles, costing about $40 each time:
– $40 per change / 8,000 miles = $0.01 per mile
3. **New Tires:** Tires are expensive but necessary. For safety, especially in icy winters, I invest in good-quality tires. A set for my car costs around $600, lasting about 60,000 miles:
– $600 / 60,000 miles = $0.01 per mile
– Note: My tire store offers free lifetime rotations, so no extra costs there.
4. **Other Maintenance and Unexpected Repairs:** As cars age, repairs become more frequent. My last commuter car cost roughly $2,000 annually for maintenance and repairs, equating to:
– $2,000 / 30,000 miles = $0.07 per mile
5. **Depreciation:** Depreciation is a significant hidden cost. It’s the car’s lost value over its lifespan. I bought my current car for $12,620 (including interest). I expect it to last 150,000 miles and to sell it for about $2,000:
– ($12,620 – $2,000) / (150,000 – 20,000) = $0.08 per mile
Adding these expenses together, the true cost of driving per mile is:
– Gas: $0.10
– Oil Changes: $0.01
– Tires: $0.01
– Repairs: $0.07
– Depreciation: $0.08
– Total: $0.26 per mile
This might not seem like a lot, but for a daily commute of 120 miles, five days a week, it adds up quickly.
Let’s be real—owning a car is expensive, and you need to pay to keep it running. However, there are ways to minimize automotive costs, based on your specific situation.
