The German automobile club ADAC publishes information on vehicles sold in its market, including Cost of Ownership analysis like the one summarised here for VW Golf
The starting points are List Price, Time Horizon, and Annual Mileage
The results are provided in the form of monthly costs in four categories and then converted to Euro cents per km as shown here for the 17 different versions of the VW ID.3
ADAC METHODOLOGY
Calculation basis for the standardized car cost calculation
1. HOLDING PERIOD
- 24 to 60 months with a standard of 60 months
2. MILEAGE
- 5,000 to 60,000 km per year with a standard of 15,000 km per year and a maximum cumulative total of of 160,000 km
3. BASE PRICE
Manufacturer's recommended retail price
4. LOSS OF VALUE
The base price for determining the residual value is the recommended retail price ex works, to which an equipment allowance is added
- this is determined by ADAC and is made up of standard comfort and safety extras such as air conditioning, metallic paint, driving dynamics control and much more
- in short, extras that have a positive effect on the price of the used car and make it easier to resell later
The current environmental premiums for electric vehicles or plug-in hybrids are taken into account when calculating the depreciation
The depreciation figures are derived from the used car price quotations of Deutsche Automobil Treuhand DAT
We also take into account any price-reducing model changes that may take place during the calculation period
We have set costs for transfer and registration at a flat rate of 500 euros
5. FIXED COSTS
Liability insurance using average normal rates with lump sum coverage up to 100 million Euros, with a premium rate of 50%, regional class R6 as well as the respective type class classification
Comprehensive insurance with 500 Euro deductible and a premium rate of 50%, regional class R4 as well as the respective type class classification
- without additional discounts for garage, multiple drivers, or member discounts
Motor vehicle tax with any tax exemptions for e-vehicles taken into account
A lump sum of 200 Euro per year for general costs such as parking fees, maps, small accessories, HU/AU etc
6. WORKSHOP COSTS
To calculate the workshop costs we use the average workshop hourly rates of the respective manufacturers according to the Central Association of the German Motor Trade Zentralverband Deutsches Kfz-Gewerbe e.V. and surveys of the workshop hourly rates
- including Value Added Tax
Oil changes and inspections
Different maintenance intervals and scopes are taken into account according to manufacturer's specifications as well as material and labor costs
Typical wear-and-tear repairs that, in the experience of the ADAC, occur particularly frequently, e.g. exhaust or brakes, a new battery, small parts such as light bulbs, etc
Costs for tire replacement based on tire mileage determined by ADAC (empirical values) as well as average tire prices of the respective series sizes
Additional flat-rate repair costs determined by ADAC, graded according to vehicle class, from a holding period of more than three years or a total mileage of 80,000 km or more
Note: In practice, there may be deviations in the calculation of repair costs
7. OPERATING COSTS
Fuel costs are calculated from fuel consumption according to WLTP or NEDC and the average fuel prices per liter at the time of updating
- regular and super gasoline 1.48 euros per liter
- SuperPlus gasoline 1.56 euros per liter
- diesel 1.30 euros per liter
- bioethanol 1.12 euros per liter
- LPG 0.70 euros per liter
- natural gas 1.10 euros per kg
- electricity 0.36 euros per kWh
- hydrogen 9.50 euros per kg
Important note on fuel consumption and fuel prices:
The calculation is made according to the WLTP cycle for vehicle in standard equipment
However, if we do not yet have the manufacturer's WLTP values at the time of preparation the calculation is based on the previous NEDC cycle
Both the costs for fuel consumption and for vehicle tax, and thus the total costs, will generally be higher as a result
The average fuel prices used by us can vary considerably from region to region within Germany
Refill costs for engine oil and AdBlue® in diesels with SCR catalytic converter
Flat rate for car wash and maintenance of 250 euros per year
Additional flat-rate repair costs set by the ADAC are graded according to vehicle class and applied for a holding period of more than three years or a total mileage of 80,000 km or more
ADDITIONAL NOTES
If you are financing the purchase of the vehicle by means of a loan or are using your savings balance for this purpose, you should also include the interest for this in your calculation
- this is not taken into account in our standard calculations.
ORIGINAL ADAC DOCUMENT - 1
ORIGINAL ADAC DOCUMENT - 2
Please forgive any mistranslations
- and let me know with corrected wording
- the format of this paper made translation very difficult
That and the 3,000 euros (net) manufacturer's contribution to the electric car premium put the price into perspective somewhat, but the test car still remains an expensive car in its class
This does not take into account that the software is not yet ready in important parts and has considerable bugs - the vehicle should not really be sold in this form yet
This gives customers little pleasure, but all the more frustration due to the dropouts and malfunctions
ADAC ANALYSIS SHOWS BEVs ARE NOW BEATING ICEVs ON CUSTOMER COST
- VW ID.3 and Hyundai Ioniq show the clear advantages
- Tesla Model 3 NOT included in the analysis
ADAC COMMENTARY :
The total cost calculation uses a five-year holding period and 15,000 km/year
The VW ID.3 clearly beats comparably powered and equipped VW Golf petrol and diesel models when taking into account the electric purchase subsidy
The reasons for this are the lower depreciation in absolute terms, the lower fixed costs with no vehicle tax, and above all the significantly better insurance type classifications of the ID.3
Jidu Auto, an electric vehicle venture between China’s tech giant Baidu and Chinese automaker Geely, aims to plough 50 billion yuan ($7.7 billion) into producing smart cars over the next five years, its chief executive told Reuters
Xia Yiping said on Friday that the funding would come from Baidu and other investors and Jidu would aim to launch its first electric vehicle EV in three years, as is standard for the industry, but would make efforts to speed this up
Its first EV would look like a "robot" and would target young customers, Xia said, adding that Jidu would analyse big market data before deciding on a final model
1. We are already in a period of automobile Supply Shortage relative to Natural Demand
That Supply Shortage has the potential to total up to as much as 600 million vehicles during the 15 years through 2034
2. This 600 million vehicle Supply shortfall will represent a huge portion of the Global Vehicle Fleet, which is only around 1,500 million vehicles today
- and it will be due to Battery Supply limitations
3. One consequence of this lack of new vehicles may be to raise the value and longevity of Used Vehicles during those "Supply Shortage Years" beyond what many of us are expecting