The True Cost of Driving Calculator

How much does it REALLY cost
you to drive?

This article identifies and outlines many of the actual costs of driving, both the direct costs a driver pays and those hidden costs carried by the public at large.





FROM TIME TO TIME, you may have wondered what it really costs you to drive your car.

Right away most people think of the obvious costs: purchasing and maintaining a car, gas, oil, insurance, registration, parking, and tolls. Many people also know that other costs associated with automobiles are paid for by taxpayers, like highway construction and maintenance. Since those fees don’t come directly from a driver’s pocket, they aren’t usually considered as costs of driving. However, indirect costs are very real, along with other hidden environmental and social costs that drivers and non-drivers alike pay to support our primary mode of transportation – the automobile. Both direct and indirect driving costs are outlined in this article.

To make these costs even more relevant to you, each cost has been broken down into a cost per mile basis in our True Cost of Driving calculator. Click on the link to calculate your costs based on your commute conditions in order to see what you really pay to drive your car each year. After including these costs, it quickly becomes clear that driving a car is much more expensive than you may think. In fact, the true cost of driving (as of 5/4/10) is about $1.36 per mile!

Before you get in your car next time, think about whether this trip is really worth the cost. Think about whether it may be cheaper and more efficient to carpool, take the bus, ride a bike, or walk. Using these sustainable transportation options might just keep some cash in our pockets!

THE COSTS OF DRIVING

DIRECT COSTS OF DRIVING 1  
Paid directly by drivers

1 Fixed Costs – Insurance, licensing, registration, motor vehicle taxes (based on an average 2009 vehicle). 1

1 Finance Charges – Interest charges on money borrowed to purchase vehicle (based on an average 2009 vehicle, 10% down, 6% loan, 5 year term). 1

1 Depreciation – The difference between what you paid for the vehicle and what you could sell it for today (based on an average 2009 vehicle). 1

1 Fuel – Out of pocket expenses for gas.  The price of automotive fuel includes not only the fuel itself, but also fuel taxes and fees. California motorists are charged 18¢ per gallon and 18.4¢ per gallon for state and federal excise taxes, respectively. In addition, motorists are charged other state taxes and fees of 30.6¢ associated with sale and storage of gasoline. As of May, 2010, California has the second highest rate nationally, charging motorists the equivalent of 67¢ per gallon in gas related taxes and fees. 4

1 Maintenance and Tires – Out of pocket expenses for car maintenance (regular service and oil) estimated at $566 per year, and tires, estimated at $96 per year (based on about 12,500 average vehicle miles traveled per year). 1, 2

1 Residential Parking – The value of a single off-street parking space on residential property is estimated at no less than $950 per space per year. 3

1 Parking and Tolls – User fees paid at parking facilities and toll booths. 3

INDIRECT COSTS OF DRIVING2      
Paid by society through taxes, and other fees, and other charges

12 Travel Time – Includes cost to drivers of unpaid time; cost to employers for work time spent in travel; and costs associated with opportunities lost to travel time. Travel time should be measured door-to-door, including time spent parking and walking to and from the vehicle. This is a variable rate depending on congestion encountered and distance traveled. 3

12 Accidents – Because accidents are so infrequent, drivers tend to ignore or under-estimate these costs. Accident rates have decreased over the years, but the risk remains level as the number of miles driven has increased. Insurance only compensates roughly one third of accident costs borne by the driver (i.e. pain and suffering, death, injuries, and disability), while the remainder is paid for by the driver themselves and the government. In 2007, Caltrans reported 501,908 accidents cost California drivers an estimated $528 million in lost lives, property, and productivity. 3, 8

2 State and Local Construction Improvements, and Repair of Roads and Highways – Federal costs in 2005 totaled $72.9 billion with approximately 59% of that covered through fuel taxes and user fees. The remaining $30 billion was financed through state and local sources. 5, 6, 7

2 State and Local Maintenance and Operations of Roadways – Again, approximately 59% of the $41.5 billion cost in 2005 came from fuel taxes and user fees that are paid directly by drivers, with the remaining $17 billion financed through state and local taxpayers, property owners, and others. 5, 6, 7

2 Commercial and Employer Parking – Free parking is probably the most prevalent, yet hidden cost, associated with driving. Drivers report that parking is free for 99% of their non-commute trips. Donald Shoup, in “Curbing Gridlock”, states that the average value of employer parking subsidies is greater than the cost for fuel for the commute. Shoup estimates that by encouraging more driving, these parking subsidies increase driving between 20-40%. 3, 9

2 Waste Disposal – Disposal of tires, batteries, junked cars, oil (long-term), and other semi-hazardous materials resulting from motor vehicle production and maintenance.  The cost associated with this issue has been listed as 0 cents per mile, because the disposal and recycling of hazardous materials has recently improved.  However, the cost to dispose of these materials still amounts to approximately $1.2 billion per year. 3

2 Air Pollution Damage – Fuels are getting cleaner, and more people are driving cars with higher gas mileage. However, motor vehicles are still a major source of carbon monoxide and smog because vehicles are being driven more miles than in the past. Air pollution damages human health, crops, materials, vegetation and lowers visibility. Motor vehicles are also significant contributors to nitrogen oxide emissions which contribute to acid rain. 3

2 External Resource Consumption Costs – Vehicle production and use is one of the largest consumers of natural resources – primarily petroleum, various metals, and rubber. Passenger vehicles account for about 40% of the petroleum products consumed in the U.S. each year. The cost of purchasing gas and vehicles does not account for environmental and national security costs associated with the extraction, processing, transport, recycling, and depletion of nonrenewable resources. As oil becomes scarcer, drivers will see more volatile energy prices, increased conflict over energy resources and declining availability. 3, 10, 11

2 Road Noise – Noise negatively affects human health and causes declines in property values. Soundwalls are strategically placed to reduce impacts, but come with a high price tag paid by state and federal funding sources. In addition to noise impacts on humans, noise also affects wildlife, thereby increasing environmental costs. 3

2 Carbon Dioxide (CO2) Reduction – Carbon Dioxide is the predominant greenhouse gas that causes global warming. More than one-fourth of the carbon dioxide emissions in the United States (US) are transportation related. According to the latest annual EPA report on emissions, cars alone account for more than 625 million tons of carbon dioxide emitted into the nation’s atmosphere each year. Although automakers are producing more efficient vehicles, dependency on gasoline powered transportation continues to contribute to global warming. New technology and legislation addressing climate change, as well as efforts made by individuals to reduce their carbon footprint could significantly reduce the costs of CO2 mitigation. 3, 12, 13

2 Water Pollution and Hydrologic Impacts – Motor vehicles and their facilities greatly affect water quality and hydrologic action. Crankcase oil drips, roadside herbicides, leaking under-ground storage tanks, and tanker oil spills all contribute to water pollution. Hydrologic impacts include increased impervious surfaces, concentrated runoff and flooding, loss of wetlands, shoreline modifications, and reduced groundwater recharge. These impacts impose a number of costs including polluted surface and ground water, contaminated drinking water, increased flooding and flood control costs and wildlife habitat damage. 3

2 Transportation Diversity and Equity – Transportation diversity and equity means providing adequate transportation for non-drivers, particularly for those who are economically, socially, or physically disadvantaged. Non-drivers face a relative lack of mobility options when it comes to jobs, housing, education, social services and activities. This impact is accelerated by auto-oriented land use patterns. 3

2 Barrier Effects on Pedestrians and Bicycles – Roads are considered transportation links, yet automobile infrastructure ultimately impacts the mobility and safety of pedestrians and bicyclists. This infrastructure includes light poles, stop signs and other impediments on sidewalks and streets, which slows down travel and creates dangerous conditions. The costs of these barriers tend to affect mostly disadvantaged populations, including children, the elderly, and those with disabilities, creating further transportation inequities. 3

2 Land Use Impact Costs – Transportation and land use are interconnected, and decisions in both arenas have economic, societal, and environmental costs. Automobile oriented transportation and land use fosters sprawl, thereby reducing agricultural land and open space, discouraging pedestrian and bicycle traffic, and increasing municipal costs for roads, schools, and emergency services. California has recently led in reducing this effect by passing SB 375, which requires land use and transportation planning to be done in concert in order to ensure sustainable growth. 3, 14

2 Roadway Land Value – Roadway land value is not paid for by the users through rent, nor does it generate property taxes, except where land acquisition costs are incorporated into roadway user fees. Therefore, roads are under-priced compared with other land uses. They also do not provide the same degree of secondary value as other public lands, such as parkland and wetlands, open space, or wildlife habitat. 3

2 Congestion – Congestion occurs during rush hour when traffic volumes reach a roadway’s capacity. This congestion results in increased travel times, increased air pollution, increased vehicle operating costs, increased driver stress, lost productivity, and insurance rate increases due to increased accident risk, and slowed delivery of business products.  This cost varies based on degree of congestion and time of travel. 3

Use our commute calculator to figure out your true cost of driving.

There are some great alternatives to driving alone: carpool, vanpool, bus, bike, walk and telecommute. Call Commute Solutions at 831.429.POOL, visit online at commutesolutions.org or email info@commutesolutions.org and start saving!

This article was last revised February 2010

SOURCES
1 American Automobile Association, Your Driving Costs 2009.
2 Caltrans, California Motor Vehicle Stock, Travel and Fuel Forecast, November 2007.
3 Litman, Todd. "Transportation Cost Analysis: Techniques, Estimates, and Implications". Victoria Transport Policy Institute, January, 2009.
4 American Petroleum Institute, Nationwide and State-by-State Motor Fuel Taxes, April 2009.
5 US Department of Transportation, Federal Highway Administration, Highway Statistics 2005 Roadway Extent, April 2007 Table VM-1.
6 U.S. Department of Transportation, Federal Highway Administration, Highway Statistics 2004 Highway Finance, April 2009 Chart
7 U.S. Department of Transportation, Federal Highway Administration, Highway Statistics 2005 Highway Finance, April 2009, Table HF-10.
8 California Highway Patrol, 2007 California Quick Collision Facts, 2008.
9 “Cashing Out Employer-Paid Parking” in Curbing Gridlock: Peak-Period Fees to Relieve Traffic Congestion, TRB Special Report 242, by Shoup, Donald, 1994.
10 US Department of Energy, “Reduce Oil Dependence Costs‚” 2008.
11 Alliance to Save Energy, "Increasing America‘s Fuel Economy", February 2002.
12 Environmental Protection Agency, “Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2007,” 2009.
13 Terrapass, Carbon Offset Service [Online], 2009
14 California State Senate, SB 375 Bill Analysis, 2008

Commute Solutions, a program of the Santa Cruz County Regional Transportation Commission, offers personalized commute assistance to residents and employees since 1979.

Commute Solutions
Santa Cruz County Regional Transportation Commission
1523 Pacific Avenue
Santa Cruz CA 95060-3911