A vehicle is the second-largest expense most people have, but a lot of us are not taking into account all the expenses associated with owning and driving a vehicle.
Recently, BCAA introduced Driving Costs, a free online tool that allows motorists to calculate the cost of vehicle ownership, including gas, licence fees and depreciation. In a recent press release, BCAA noted the Driving Costs tool will suggest the real cost of owning and operating a vehicle in British Columbia.
In a CAA study conducted as part of an Ipsos Reid poll of more than 2,000 Canadians, about four in five respondents under-estimated the cost of owning and operating a vehicle, with six in 10 respondents under-estimating the cost by $4,000 or more, noted the release.
The study also showed that two-thirds of respondents thought their annual grocery bill was bigger than their car ownership costs, which is not true. The yearly ownership cost for an average compact car in B.C. is about $9,500 while the average British Columbian spends close to $5,700 on groceries a year, stated the release.
The study also indicated a lot of the discrepancy between actual ownership costs and owners' best guesses comes from not including depreciation when thinking about the cost of vehicle ownership. When asked to list vehicle expenses in order of cost, respondents ranked depreciation in the bottom three when, in fact, it's one of the largest costs of ownership.
Understanding the real cost of owning and driving a vehicle may influence how vehicle owners use their vehicle and how often they'll choose to drive.
If they decide to drive less frequently, they may end up saving money, noted the press release.
The Driving Costs calculator provides yearly figures by vehicle make, class, and province. It's available at bcaa.com/drivingcostscalculator.
