car depreciation

A car's internal costs are all the costs consumers pay to own and operate a car. Normally these expenditures are divided into fixed or standing costs and variable or running costs. Fixed costs are those which do not depend on the distance traveled by the vehicle and which the owner must pay to keep the vehicle ready for use on the road, like insurance or road taxes. Variable or running costs are those that depend on the use of the car, like fuel or tolls.
Compared to other popular modes of passenger transportation, especially buses or trains, the car has a relatively high cost per passenger-distance traveled. For the average car owner, depreciation constitutes about half the cost of running a car. The typical motorist underestimates this fixed cost by a significant margin.
The IRS considers that the average US automobile has a total cost of US$0.58/mile, around €0.32/km. According to the American Automobile Association, the average driver of the average sedan spends totally approximately US$8,700 per year, or US$720 per month, to own and operate their vehicle.

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