Calculating the Operating Cost of a Vehicle
Effective January 2008
To determine the total operating cost of a vehicle, you need to:
- Establish what the vehicle's Fixed Cost value is (see Fixed Costs Table)
- Determine the Running Cost value (see appropriate Running Costs Table)
- Add these two figures together (Fixed Cost and Running Cost) to get the Total Vehicle Operating Cost in cents per kilometre.
Fixed Costs
The Fixed Cost values (which are inclusive of VAT) include:
- The depreciation on the vehicle's value
- Comprehensive insurance
- The licensing of the vehicle.
Insurance figures are determined according to a sliding scale based on the 'Purchase Price'. The scale reflects a general average rate for the annual premium.
| Purchase Price | % Of Purchase Price |
| 1 - R 100 000 | 11.92% |
| R100 001 - R250 000 | 7.43% |
| R250 001 - R400 000 | 5.29% |
| R400 001 + | 4.69% |
(Add a 30% loading for a driver with a driver's licence held for less than 5 years)
It is assumed that:
- Vehicles below R200 000 are fitted with a VESA level 4 alarm / immobiliser device.
- Vehicles above R200 000 are fitted with a vehicle-tracking device
Hire purchase repayments are not included in the calculation of the vehicle's Fixed Cost values.
Using The Fixed Costs Table
Select from the first column the purchase price (not the current value) you paid for the vehicle. It does not matter whether you bought it new or used. Decide how many kilometres you travel on average each year (include both business and personal travel). The value depicted where the row and column is the Fixed Cost value of the vehicle.Example : If a vehicle with a purchase price of R60 000 travels an average of 20 000km per year, the Fixed Cost value will be 131c/km
| Purchase Price (VAT incl) | Fixed Costs Table | |||||||
| Averaged Fixed Cost (C/Km) - All Costs Inclusive of VAT | ||||||||
| Annual Distance Travelled | ||||||||
| <10 000 | 10 001 to 15 000 |
15 001 to 20 000 |
20 001 to 25 000 |
25 001 to 30 000 |
30 001 to 35 000 |
35 001 to 40 000 |
>40 001 | |
| up to R30 000 | 103 | 69 | 52 | 42 | 35 | 31 | 27 | 24 |
| R30 001 - R50 000 | 173 | 115 | 87 | 70 | 59 | 51 | 45 | 41 |
| R50 001 - R75 000 | 261 | 174 | 131 | 105 | 88 | 77 | 68 | 62 |
| R75 001 - R100 000 | 350 | 233 | 175 | 141 | 119 | 104 | 92 | 83 |
| R100 001 - R125 000 | 383 | 256 | 192 | 155 | 130 | 114 | 101 | 91 |
| R125 001 - R150 000 | 461 | 308 | 232 | 187 | 157 | 137 | 122 | 110 |
| R150 001 - R175 000 | 541 | 361 | 272 | 219 | 184 | 161 | 142 | 129 |
| R175 001 - R200 000 | 621 | 414 | 311 | 251 | 211 | 185 | 163 | 148 |
| R200 001 - R250 000 | 779 | 520 | 391 | 316 | 265 | 232 | 205 | 185 |
| R250 001 - R300 000 | 878 | 586 | 441 | 356 | 299 | 262 | 232 | 210 |
| R300 001 - R350 000 | 1030 | 688 | 517 | 417 | 351 | 307 | 272 | 246 |
| R350 001 - R400 000 | 1184 | 790 | 595 | 480 | 403 | 353 | 313 | 283 |
| more than R400 001 | 1313 | 876 | 659 | 532 | 447 | 392 | 347 | 314 |
Running Costs
The Running Cost values include:
- Maintenance costs (servicing, repairs, tyres and lubrication)
- Fuel
Using The Running Cost Tables
Select the appropriate table depending on the type of vehicle and the type of fuel. (Note: ordinary vehicles include passenger cars and multi purpose vehicles (MPVs), while light commercial vehicles (LCVs) include bakkies and double-cabs with a load box.). Select the appropriate engine capacity of the vehicle. Multiply Column A (fuel factor) by the current fuel price in Rands per litre . The resultant figure will be in cents per kilometre. To this, add Column B (service and repair costs) AND Column C (tyre costs).
Running Costs calculation (C/Km) = (A multiplied by fuel price in R/litre) + B + C
|
Example: If the vehicle has an engine capacity of 1.6 and is petrol driven, choose the Running Cost Table for Petrol Vehicles and select the engine capacity 1501 – 1800. Multiply Column A (8.80) by the current petrol price (R7.33*) = 65.82 (*Fuel price used for example only. Use the latest fuel price in your calculations) Add Column B (16.71) and Column C (11.26) = 93.79 c/km Round off to the nearest decimal point = 94 c/km Additional Running Cost Adjustments: |
| Engine Capacity (cc) | Running Costs Table - Petrol Vehicles | ||
| Averaged Running Cost (C/Km) - All Costs Inclusive of VAT | |||
| Fuel | Maintenance | ||
| Petrol Factor | Service And Repair Costs (in cents) | Tyre Costs (in cents) | |
| A | B | C | |
| < 1 300 | 7.67 | 15.14 | 6.55 |
| 1 301 - 1 500 | 8.18 | 15.87 | 8.29 |
| 1 501 - 1 800 | 8.98 | 16.71 | 11.26 |
| 1 801 - 2 000 | 9.01 | 23.48 | 17.65 |
| 2 001 - 2 500 | 10.67 | 27.62 | 18.81 |
| 2 501 - 3 000 | 11.22 | 28.86 | 20.55 |
| 3 001 - 4 000 | 12.38 | 31.97 | 24.18 |
| > 4 001 | 14.44 | 41.01 | 34.16 |
Running Costs calculation (c/km) = (A multiplied by petrol price in R/litre) + B + C
| Engine Capacity (cc) | Running Costs Table - Diesel Vehicles | ||
| Averaged Running Cost (C/Km) - All Costs Inclusive of VAT | |||
| Fuel | Maintenance | ||
| Diesel Factor | Service And Repair Costs (in cents) | Tyre Costs (in cents) | |
| A | B | C | |
| < 2 000 | 6.82 | 22.68 | 17.65 |
| 2 001 - 2 500 | 8.32 | 33.39 | 18.81 |
| 2 501 - 3 000 | 8.61 | 35.15 | 20.55 |
| 3 001 - 4 000 | 9.10 | 34.42 | 24.18 |
| > 4 001 | 13.99 | 57.77 | 34.16 |
Running Costs calculation (c/km) = (A multiplied by diesel price in R/litre) + B + C
| Engine Capacity (cc) | Running Costs Table - Petrol LCVs | ||
| Averaged Running Cost (C/Km) - All Costs Inclusive of VAT | |||
| Fuel | Maintenance | ||
| Petrol Factor | Service And Repair Costs (in cents) | Tyre Costs (in cents) | |
| A | B | C | |
| < 2 000 | 9.59 | 17.20 | 8.72 |
| 2 001 - 2 500 | 13.56 | 17.47 | 10.89 |
| 2 501 - 3 000 | 15.02 | 18.01 | 11.59 |
| 3 001 - 4 000 | 15.13 | 23.11 | 13.75 |
| > 4 001 | 15.77 | 28.24 | 20.71 |
Running Costs calculation (c/km) = (A multiplied by petrol price in R/litre) + B + C
| Engine Capacity (cc) | Running Costs Table - Diesel LCVs | ||
| Averaged Running Cost (C/Km) - All Costs Inclusive of VAT | |||
| Fuel | Maintenance | ||
| Diesel Factor | Service And Repair Costs (in cents) | Tyre Costs (in cents) | |
| A | B | C | |
| < 2 000 | 8.30 | 20.23 | 8.72 |
| 2 001 - 2 500 | 10.82 | 22.15 | 11.23 |
| 2 501 - 3 000 | 11.62 | 25.82 | 11.59 |
| > 3 001 | 14.70 | 27.11 | 17.67 |
Running Costs calculation (c/km) = (A multiplied by diesel price in R/litre) + B + C
| Engine Capacity (cc) | Running Costs Table - Petrol SUVs | ||
| Averaged Running Cost (C/Km) - All Costs Inclusive of VAT | |||
| Fuel | Maintenance | ||
| Petrol Factor | Service And Repair Costs (in cents) | Tyre Costs (in cents) | |
| A | B | C | |
| < 2 000 | 10.89 | 30.82 | 17.65 |
| 2 001 - 2 500 | 11.64 | 32.04 | 18.81 |
| 2 501 - 3 000 | 13.14 | 32.38 | 20.55 |
| 3 001 - 4 000 | 14.05 | 33.42 | 24.18 |
| > 4 001 | 16.58 | 36.20 | 34.16 |
Running Costs calculation (c/km) = (A multiplied by petrol price in R/litre) + B + C
| Engine Capacity (cc) | Running Costs Table - Diesel SUVs | ||
| Averaged Running Cost (C/Km) - All Costs Inclusive of VAT | |||
| Fuel | Maintenance | ||
| Diesel Factor | Service And Repair Costs (in cents) | Tyre Costs (in cents) | |
| A | B | C | |
| < 2000 | 8.12 | 31.04 | 17.65 |
| 2 001 - 2 500 | 10.75 | 33.16 | 18.81 |
| 2 501 - 3 000 | 11.51 | 32.95 | 20.55 |
| 3 001 - 4 000 | 12.83 | 34.62 | 24.18 |
| > 4 001 | 14.70 | 37.55 | 34.16 |
Total Vehicle Operating Cost
The Total Vehicle Operating Cost (measured in cents per km) is then obtained by adding the Fixed Cost value to the Running Cost value.
Example: Add the Fixed Cost value of 131c/km to the Running Cost value of 91c/km and the Total Operating Cost will be R2.25 per kilometre.
Archived Reports
While every care has been taken to ensure that the AA Rate Schedules accurately reflect the average fixed and running costs of vehicles in the relevant price and engine capacity ranges, Absa Vehicle Management Solutions (Pty) Ltd. and the Automobile Association of South Africa make no express or implied warranty or guarantee in respect of the assumptions, the source data or the calculations used to formulate the published AA rates, and accept no liability whatsoever for any use to which this data is put by the user.
