Calculating the Operating Cost of a Vehicle

Effective April 2012

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 93 62 47 38 32 28 25 22
R30 001 - R50 000 157 104 79 63 53 47 41 37
R50 001 - R75 000 237 158 119 96 81 71 63 57
R75 001 - R100 000 318 213 160 129 108 95 84 76
R100 001 - R125 000 344 230 173 140 118 103 92 83
R125 001 - R150 000 415 277 209 169 142 124 110 100
R150 001 - R175 000 487 325 245 198 166 146 130 117
R175 001 - R200 000 560 374 281 227 191 168 149 135
R200 001 - R250 000 704 470 354 286 240 211 187 169
R250 001 - R300 000 788 526 396 320 269 237 210 191
R300 001 - R350 000 927 619 466 377 317 279 247 224
R350 001 - R400 000 1067 713 536 434 365 321 285 258
more than R400 001 1183 790 594 481 404 356 316 286


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 (8.03) by the current petrol price (R11.77*) = 94.51 (*Fuel price used for example only. Use the latest fuel price in your calculations.)

Add Column B (22.73) and Column C (16.70) = 133.94 c/km

Round off to the nearest decimal point = 134 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 6.62 17.18 8.98
1 301 - 1 500 7.39 19.76 13.10
1 501 - 1 800 8.03 22.73 16.70
1 801 - 2 000 9.24 24.29 22.00
2 001 - 2 500 10.60 29.17 25.20
2 501 - 3 000 10.96 35.97 31.70
3 001 - 4 000 12.02 38.02 32.50
> 4 001 14.40 52.34 41.00


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 28.34 22.00
2 001 - 2 500 7.70 33.80 25.20
2 501 - 3 000 8.78 40.18 31.70
3 001 - 4 000 9.90 42.67 32.50
> 4 001 11.93 60.22 41.00


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 10.00 22.79 12.90
2 001 - 2 500 13.30 23.56 15.20
2 501 - 3 000 14.05 24.71 17.00
3 001 - 4 000 14.70 26.00 21.53
> 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 28.48 12.90
2 001 - 2 500 11.10 30.18 15.20
2 501 - 3 000 11.43 30.62 17.00
> 3 001 13.26 37.82 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 22.00
2 001 - 2 500 11.30 32.95 25.20
2 501 - 3 000 12.70 34.78 31.70
3 001 - 4 000 14.20 36.69 32.50
> 4 001 16.90 41.83 41.00


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 33.01 22.00
2 001 - 2 500 9.59 36.77 25.20
2 501 - 3 000 10.90 38.11 31.70
3 001 - 4 000 12.46 39.76 32.50
> 4 001 13.30 44.29 41.00


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 134 c/km and the Total Operating Cost will be R2.53 per kilometre.  

Archived Reports

[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.