Thursday, September 20, 2012
How many hours did you spend in your car?
My colleague was lamenting that cars used to be cheap to own and he regretted not buying earlier. I need to correct him, car ownership is never cheap in Singapore, especially if you use my calculation matrix.
Ever since I started using a GPS to navigate directions, I noticed that I drive an average of 1km/min. If the journey is 15km, I usually take 15 minutes to reach the destination. Hence my average travelling speed works out to be 60km/h. This is largely consistent with the average speed of most roads in Singapore other than the expressways.
My car has a mileage of 70,000KM. This translates to 1167 hours usage. My car is already 6 years old and the depreciation works out to be 20k, base on current value of my car. Thus it cost $17 to spend one hour in the car! This excludes cost of petrol, insurance and taxes!
If I were to buy a new car now, the depreciation will be about 10k per year, base on my usage pattern, my cost will be $52/h. Prices of car have doubled since 6 years ago, but car usage cost has actually tripled, at least for my case.
I am not complaining on high cost of car ownership, but many people only calculate base on yearly depreciation. If we were to dwell further, the cost of actual usage is extremely high and uneconomical. Sigh, living in Singapore is tough!