How much does a car really cost?

Buying a car can be a real ordeal. Thousands of listings, vehicle specs, dishonest sellers, all of this means that buying a new car often brings frustration instead of joy. On top of that, you don't know how to compare the alternatives or what the real costs of running the vehicle will be. And the initial excitement turns into mounting frustration, but it doesn't have to be that way.

What makes up the cost of ownership?

You're wondering how much running a car actually costs you and what goes into it. If, like most people, you'd like to change your car every 3 years, then rather than the purchase price itself, what matters more is the drop in the vehicle's value over that period (the difference between the purchase and sale price). We often overlook this, and the final resale price can be an unpleasant surprise.

And here lies the fundamental problem. Not only is it hard to find data on depreciation for a specific model, but comparing different options becomes a real nightmare. Beyond how attractive the price offered by the seller is, you also have to understand exactly how much your car will lose in value over those 3 years. The outcome of such an exercise is often counter-intuitive, a well-hunted bargain on a Mazda 6 can, from this perspective, be as much as 40% cheaper than an offer on a Peugeot 508 of the same model year. Even though the Mazda initially cost over PLN 20,000 more at the dealership…

On top of the residual value cost, your comparison should include additional costs: financing, fuel, insurance, servicing, tyres and everyday use. And here's another interesting point, an older car doesn't always mean cheaper running costs. These items often account for more than 2/3 of the cost of running a car, while the cost of residual value loss is only 1/3 of the calculation (depending on the model). That's why the most informed customers (still most often large corporations) focus above all on the cost of ownership rather than the purchase price of the car.

You're facing a purchase decision: how do you compare costs?

You're wondering what this means for you in practice. Below we present a comparison of the cost of ownership of three cars: a new Toyota Corolla (1.6 132 HP), a Toyota Corolla (1.6 132 HP) from 2018, and the “Poles' favourite car”, a 10-year-old Volkswagen Passat (2.0, 150 HP).

The results of this exercise probably turned out to be counter-intuitive for you. A new car works out the most expensive in practice, but the difference between a new one and a 10-year-old used one isn't as significant as you might actually think. The almost-new Toyota Corolla, which has an extended manufacturer's warranty, comes out best in this comparison.

Important: when comparing servicing costs, car users rarely remember the expensive one-off repairs that affect older cars no longer under warranty. Such repairs can often turn the calculation above completely upside down. The assumed amount of PLN 2,000 a year for unforeseen repairs is only an average, and reality can often be an unwelcome surprise.

How does CarMore work?

We search through hundreds of thousands of offers from authorised dealers for those that are better than market value (only genuine bargains). By coordinating all the elements of running costs (except fuel), we're able to offer customers only the real “cherries”. Thanks to this and a simplified buying process, you can enjoy the purchase without worrying that you'll be cheated or make the wrong choice.