Calculating the Operating Cost of a Vehicle

Effective October 2011

To determine the total operating cost of a vehicle, you need to:

  1. Establish what the vehicle's Fixed Cost value is (see Fixed Costs Table below).
  2. Determine the Running Cost value (see appropriate Running Costs Table below).
  3. 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:

  1. The depreciation on the vehicle's value.
  2. Comprehensive insurance.
  3. 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 - R100 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 meet is the Fixed Cost value of the vehicle.

Example: If a vehicle with a purchase price of R60 000 travels an average of 20 000 km per year, the Fixed Cost value will be 119c/km.

Purchase Price (Incl. VAT) 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 94 62 47 38 32 28 25 22
R30 001 - R50 000 157 105 79 64 53 47 41 37
R50 001 - R75 000 238 159 119 96 81 71 63 57
R75 001 - R100 000 320 213 160 129 109 95 84 76
R100 001 - R125 000 346 231 174 140 118 104 92 83
R125 001 - R150 000 417 278 209 169 142 125 111 100
R150 001 - R175 000 489 327 246 199 167 147 130 118
R175 001 - R200 000 562 375 282 228 192 168 149 135
R200 001 - R250 000 707 472 355 287 241 212 188 170
R250 001 - R300 000 792 529 398 322 270 238 211 191
R300 001 - R350 000 931 622 468 378 318 279 248 225
R350 001 - R400 000 1072 716 539 435 366 322 285 259
more than R400 001 1188 793 597 483 406 357 317 287


Running Costs

The Running Cost values include:

  1. Maintenance costs (servicing, repairs, tyres and lubrication).
  2. Fuel.

Using The Running Costs 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 (8.11) by the current petrol price (R10.37*) = 84.10 (*Fuel price used for example only. Use the latest fuel price in your calculations.)

Add Column B (20.73) and Column C (16.13) = 120.96 c/km

Round off to the nearest decimal point = 121 c/km

Additional Running Cost Adjustments:

Where applicable, add the following percentages to the Running Costs only:

  • Bakkie fully loaded - add 12% 
  • 4x4 fully loaded - add 25%
  • Single axle trailer - add 8%
  • Double axle trailer - add 10%

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 6.67 17.17 8.48
1 301 - 1 500 7.38 19.76 12.51
1 501 - 1 800 8.11 20.76 16.13
1 801 - 2 000 9.29 24.01 21.23
2 001 - 2 500 10.60 29.17 24.56
2 501 - 3 000 10.80 35.97 29.19
3 001 - 4 000 12.09 38.02 30.25
> 4 001 14.40 53.08 45.41


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 6.50 28.23 21.23
2 001 - 2 500 8.04 32.07 24.56
2 501 - 3 000 9.10 38.88 29.19
3 001 - 4 000 9.90 39.43 30.25
> 4 001 11.93 60.22 45.41


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 9.90 22.76 12.75
2 001 - 2 500 13.90 22.84 15.09
2 501 - 3 000 14.05 23.22 16.49
3 001 - 4 000 14.34 26.00 20.66
> 4 001 15.80 30.32 22.10


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 8.57 29.32 12.75
2 001 - 2 500 11.10 30.18 15.09
2 501 - 3 000 11.43 30.62 16.49
> 3 001 13.26 39.40 22.10


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 9.42 29.50 21.23
2 001 - 2 500 11.30 32.95 24.56
2 501 - 3 000 12.70 33.45 29.19
3 001 - 4 000 14.10 36.69 30.25
> 4 001 16.80 40.53 45.41


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 8.24 32.53 21.23
2 001 - 2 500 9.59 35.80 24.56
2 501 - 3 000 10.40 36.51 29.19
3 001 - 4 000 11.80 38.75 30.25
> 4 001 13.30 42.80 45.41


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 119 c/km to the Running Cost value of 121 c/km and the Total Operating Cost will be R2.40 per kilometre.  

Archived Reports

March 2011
June 2010
December 2009
June 2009
December 2008
June 2008
January 2008
July 2007
January 2007
September 2006
August 2005
October 2004

[logo] AbsaWhile 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.