4 mistakes and facts about running costs: Your car costs you 1,100 francs a month

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Switzerland is a car country; There is one car for every two people. Mobile freedom is crucial, but many people also rely on the car for work and leisure. It’s actually surprising considering the cost. A comparison of 22 European countries makes it clear: nowhere else is it more expensive to drive than in Switzerland. According to the “Car Cost Index 2021” of leading global leasing provider Leaseplan.com, total operating costs in this country are 1,138 euros per month, equivalent to approximately 1,100 francs.

Therefore, it is important to accurately calculate the total cost of your own vehicle. Because, as a study by the University of Mannheim and Yale University in the USA shows, many drivers still think the costs are too low. Car owners surveyed underestimated the cost of their vehicles by almost 50 percent.

The latest Swiss mobility study underlines this misconception. Respondents there estimated the total cost of the car to be well below the actual total cost:

• Effective vehicle costs (TCS): 645 francs per month
• Estimated costs (working): 295 francs per month
• Difference (underestimation of costs): 340 francs per month

Total cost makes the difference

According to the Swiss Mobility Barometer, drivers estimate that monthly car costs are too low at 340 francs. According to TCS, the average cost of a car is 635 francs, while survey respondents estimated the cost at only 295 francs. One explanation for the incorrect assumption is that total costs should include insurance, taxes, and maintenance in addition to purchase costs or monthly lease payments. Expenses included in the fixed monthly price of a vehicle with a Carvolution subscription. Additional costs are only for fuel or charging current. For example, with Carvolution you can buy a new Fiat 500 or Dacia Spring with an all-inclusive subscription for just under 400 francs a month.

As the examples below show, some mistakes and misunderstandings remain regarding the running costs of a car.

Even those who pay for their car in cash still have more expenses than fuel. Taxes, insurance and service accrue throughout the year but should be taken into account. And only if you take into account depreciation and depreciation and leave this amount aside, you can have a vehicle in the same price range again when you change vehicles. According to the “Automobile Cost Index 2021”, fuel or electricity accounts for 10 to 23 percent of total costs, depending on the type of driving. However, given the geopolitical situation, spending on gasoline, diesel or electricity can fluctuate greatly. Consumption of new vehicles is significantly lower and electric cars currently perform best in terms of energy costs.

In Carvolution vehicle subscription, all expenses except fuel and charging fee are included in the monthly fixed price. Customers receive discounts on fuel or charging current with an Avia fuel card or Evpass membership. Thanks to the partnership between MyClimate and Carvolution, emissions can also be balanced free of charge if desired.

The rental rate in the ad sounds appealing: Owning a car can be very cheap. Various facts are ignored here. The amount of the rental fee depends on the down payment made, the agreed duration and the mileage package traveled during the entire rental period. In addition to the rental fee, there are also taxes, comprehensive insurance, service and maintenance, and tire costs. Touring Club Switzerland (TCS) recommends multiplying the rental rate by 3 to know the real costs.

The fixed monthly price of the Carvolution vehicle subscription includes all costs other than fuel. There is no extra cost. The mileage package can be set monthly directly from the Carvolution app. This means that additional mileage costs can be easily eliminated.

This misconception persists: The car is paid for when the lease ends. Of course, this is not the case. The advantage of leasing is that capital outlay is much lower than buying a car, and leasers don’t have to worry about resale or residual value. Because the vehicle ultimately returns to the leasing bank and can probably be purchased as a used car. In most cases, the sales price corresponds to the market value of a used car. Installments were not paid for the car, but only for its use.

Carvolution vehicle subscription also corresponds to a long-term rental. But a subscription differs from a rental: insurance, taxes, service, maintenance and tire costs are included in the fixed monthly price. Maturity terms between 3 and 48 months can be selected. Mileage package can be adjusted monthly. No deposit required; New customers will be charged a one-time order fee of 390 francs.

“Yes, at first glance the subscription prices seem a bit high,” says Léa Miggiano. As the co-founder of Carvolution, he often faces this bias. This has to do with the fact that many car owners misjudge overall costs. “As a result, they are often underestimated and our fixed monthly prices, which cover everything from insurance to taxes to tires and services, seem expensive,” explains Miggiano.

But as a test by comparison portal Comparis shows, Carvolution’s monthly subscription price is still cheaper than leasing. “A car subscription is generally cheaper than leasing,” and the high level of flexibility makes the subscription even more attractive, Comparis said. Automotive expert Ferdinand Dudenhöffer from the CAR Center in Duisburg also said: “Vehicle subscription is simple, transparent and cost-effective for the customer.”

Attractive prices thanks to lean processes

The selection of vehicles and equipment at Carvolution is limited compared to leasing providers; There are approximately 50 vehicles of different brands and models. However, Léa Miggiano emphasizes that Carvolution is able to offer attractive prices thanks to lean processes and large quantities in supply, which has an impact on the overall cost of the vehicles in subscription.

Therefore, if you want to use your own vehicle instead of dealing with costs, purchasing and paperwork, you will find the right offer with a vehicle subscription. Vehicle subscription offers great flexibility thanks to maturities between 3 and 48 months. “A car that you don’t need or doesn’t meet your needs is really expensive,” Miggiano says.

Thanks to the subscription offer, it’s easy to get your own car with full cost transparency. At Carvolution, everything can be done in one step, from comparing total costs to the desired subscription configuration to selling the old car through its subsidiary Farie.ch.

Source: Blick