Purchase
To some a car is a status symbol or an extension of their personality, to others it is purely functional. I fall in the latter category. Owning a car spares me from the unreliable public transportation in Nairobi. I rarely have more than 2 passengers for the majority of my trips, so a small car works very well for me. My goal is to spend as little as possible on the car purchase and running costs.
In September 2018 I purchased a 1,300cc second hand Mazda Demio (manufactured in 2011) for KES 700,000. It was imported from Japan in mid-2018 and the seller had already registered it in Kenya. I paid the National Transport and Safety Authority (NTSA) KES 2,615 for the transfer of ownership and issuance of the new logbook.
Depreciation
Even though I bought the Mazda Demio for KES 700,000 the assessed value was KES 750,000 for the insurance cover. One year later, in Sep 2019, the assessed value was KES 670,000 so it had depreciated by KES 80,000 (10.67%).
Distance Driven
Approximately 7,200 KM is the total distance I will have driven the Mazda Demio in two years, an average of 300 KM a month.
The majority of my daily one-way trips are no more than 3 - 5 km as home, work school A and shopping centers are in close proximity. The longest trips are 20 km to school B.
Expenses
KES 232,634 spent thus far, excluding the purchase and logbook costs - approximately KES 9,693 a month.
Parking - KES 7,200 [estimate]
This is the one expense I have not tracked. I estimate I have paid KES 300 per month. I do not pay for parking at work so these costs are mainly at malls and the occasional airport entry fee.
Accessories - KES 8,785
I was grateful that the seller had tinted the front windows and added a rear view mirror and radio expander. As I am very lazy about adding accessories to a car. I reimbursed him KES 5,035 for this cost. Later I added rubber floor mats and a windscreen sun shade for KES 1,950. Last but not least I bought 3 blue kikoys to use as seat covers.
Car Wash - KES 12,826
I get the car washed approximately twice a month. Was surprised that it adds up to this tidy sum but very happy with the service I get from the gentleman that cleans it.
Insurance - KES 53,429
Two payments in Sep 2018 and Sep 2019. Simple plan with this is to pay for the cheapest cover from a reliable company and pray that it will not be required.
Fuel - KES 70,601
I mainly buy fuel from one of two Shell stations near where I live. I fill up the tank and run it down, this works out to a visit to the fuel station once a month. The average for the amount spent each month on fuel is KES 2,942.
Service - KES 79,693
This includes three scheduled services at the garage I have been taking my cars to for almost 20 years. I have also replaced the tires, and done alignment and wheel balancing twice at a different tire dealer.
[Updated on Aug 29, 2020 after I fueled the car on Aug 18th due to some trips that week that I had not anticipated.]
Wow, Alex am impressed by your thorough work, very diligent, patient and calculating as always. Alleluia
ReplyDeleteAlex, as always you inspire me to think differently, its time i took the cue and subject my cars based expenses on a lens. Thank you.
ReplyDeleteImpressive for a young guy like me wanting to start the journey of owning my own car
ReplyDelete