Costs for Mid-Size 2007 Vehicle Vary Widely Based on Location, Insurance
Detroit, MI, Philadelphia, PA, and Los Angeles, CA, are the most expensive places to own and operate a typical 2007 mid-size vehicle, with yearly costs exceeding $10,600, according to the latest analysis by Runzheimer International, the Wisconsin-based firm specializing in total employee mobility.
Driving a typical mid-size car in the Detroit area costs $12,210 per year with Philadelphia next at $11,081, and Los Angeles in third place at $10,604. Expenses include operating costs (fuel, oil, tires, and maintenance) and ownership costs (insurance, depreciation, and license, and registration fees).
In sharp contrast, driving this same vehicle in Sioux Falls, SD, Bismarck, ND, and Grand Forks, ND, costs the owner approximately $7,700, representing a difference of $4,581 between the most and least expensive locations.
The three highest-cost cities in Runzheimer’s analysis of more than 100 U.S. cities all share one common factor–high auto insurance rates. Detroit rates for liability, comprehensive, and collision insurance are $5,072 annually; Philadelphia rates are $3,779; and Los Angeles rates are $3,225.
There is a wide variation in the cost of vehicle maintenance across the country. Assuming normal service, maintenance, and tires for a vehicle driven 60,000 miles over four years range from a high of nearly 8.00 cents-per-mile in San Francisco, CA to a low of 4.99 cents-per-mile in Bismarck, ND.
Runzheimer’s analysis reveals that automobile ownership and operating costs vary significantly depending upon where a person drives. As a result, it’s helpful to calculate annual vehicle expenses to allow for proper budgeting and planning. For organizations that reimburse dozens or even hundreds of employees who operate their personal vehicles on business, establishing accurate driving costs becomes critical.
For more information on Runzheimer International, visit www.govinfo.bz/5973-157.