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T3 Study on Car Costs: Even a Corsa Costs 600,000 Euros

Over a lifespan of 50 years, the car is one of the most expensive consumer goods, also causing high societal costs. According to a study by the T3 Institute, even an Opel Corsa costs nearly 600,000 euros, while a Mercedes GLC costs almost a million euros.

A car that is affordable on its own, a small fortune over a lifetime: Including the external costs to society, small cars like the Opel Corsa come to a total cost of nearly 600,000 euros at 15,000 kilometers per year. | Photo: Opel
A car that is affordable on its own, a small fortune over a lifetime: Including the external costs to society, small cars like the Opel Corsa come to a total cost of nearly 600,000 euros at 15,000 kilometers per year. | Photo: Opel
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Johannes Reichel

Even small cars are among the most expensive consumer goods for private households in Germany. At the same time, cars are heavily subsidized by society. This is the finding of a study by the T3 Research Institute in collaboration with Lund University, which the Federal Association for Bicycle Future (BVZF) is now pointing out. The study examined both the individual and external costs incurred from owning and operating a car for 50 years and driving 15,000 kilometers per year. The total costs of lifelong car ownership range between 599,000 euros for an Opel Corsa 1.2 gasoline small car, 653,000 euros for a VW Golf 1.0 TSI, and around 960,000 euros for a Mercedes GLC 200 4Matic, a compact SUV, all vehicles calculated with gasoline combustion engines.

Society bears these costs to 41 percent for the Opel Corsa and to 29 percent for the Mercedes GLC. This corresponds to an indirect subsidy of 4,600 and 5,300 euros respectively—per car and year. These results come from a new study by the T3 Research Institute, a traffic think tank co-founded by the Federal Association for Bicycle Future, based in Freiburg. The percentage share of car costs is particularly drastic for an unskilled worker, who has to spend 36 percent of his income on the small car, as much or even more than is available here for housing. For a skilled worker, it would still be 26 percent, while for a senior employee it would only be 13 percent.
 

Hefty external costs drive the price for the public

According to the institute, external costs borne by society include the construction and maintenance of roads and parking spaces, as well as costs arising from air pollution or accident damage.

"The true costs of a car are immense - both for the individual and for society. At the same time, many people are dependent on or believe themselves to be dependent on the disproportionately expensive vehicle car. This is the result of a policy that has promoted car purchases for decades through a car-centric infrastructure, subsidies, and tax policy, while the actual costs remained unclear and were thus underestimated from all sides," explains Prof. Dr. Stefan Gössling, head of the study.

The study shows that larger cars, in particular, cause higher overall societal costs due to their greater road wear, need for public space, and increased CO₂ emissions compared to small cars. Current tax models, however, make the purchase of such expensive models appear cheaper than the use of other modes of transportation.

"Whether it's bicycles, buses and trains, company bike leasing, or sharing offers: The alternatives to the car are there. But their use must be more politically promoted. Only when there are appropriate offers will drivers switch to cheaper modes of transportation," says Wasilis von Rauch, Managing Director of Zukunft Fahrrad.

In his view, such a policy would also reduce the high external costs of car traffic that are borne by society. Transport Minister Volker Wissing and Finance Minister Christian Lindner have it in their hands over the next four years to promote innovative transport solutions that enable equal and freely chosen mobility.

Translated automatically from German.
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