Car Cost Index LeasePlan Corporation N.V. - Consultancy Services September 2019
The Car Cost Index • LeasePlan’s Car Cost Index is a comprehensive analysis of the costs of owning and operating a small to medium-size car in 18 European countries . • It factors in all the various costs that must be payed for corporate leasing in each country, including fuel, depreciation, taxes, insurance and maintenance. • All costs are averaged over the first three years of ownership and assume 20,000 km of driving a year . • The data is based on corporate lease contracts and not on private lease contracts. Furthermore, employee costs (like benefit-in-kind tax) are not included. • Keep in mind that electric vehicles and diesel/petrol vehicles have different trimlines and configurations which makes it impossible to conduct a like for like comparison. Therefore, the results of this study should not be interpreted as such. 2 The following information in this report is subject to certain conditions and disclaimers (see page 11), continuing to read this report indicates your acceptance of these conditions and disclaimers.
Key findings The average monthly cost of driving a car varies hugely Greece is the cheapest place to drive across Europe, from € 440 a month in Greece to € 830 a a diesel or petrol car. month in Norway. Relative to GDP, drivers in Italy and the Netherlands Electric cars are cost competitive in northern have the highest total cost of ownership, while drivers in European countries such as the Norway and Greece and the UK have the lowest total cost of the Netherlands. ownership. Compared with our 2018 results, we see a The Netherlands is the most expensive place to drive sharp decline in the price differences between diesel cars and Norway for petrol cars. Consequently, electric cars are cheaper than diesel in the Netherlands electric cars and petrol/diesel cars for the other and cheaper than petrol in Norway. European markets 3
Driving a car in 2019 is most expensive in Norway , and cheapest in Greece Average monthly TCO of all fuel types 1 • In Northern European countries € 830 € 825 like Norway, the Netherlands, and € 764 Average € 715 Denmark, driving a vehicle is € 667 € 643 € 611 €617 € 639 € 626 € 605 € 602 relatively expensive € 618 € 563 € 521 € 507 € 496 • In Eastern European countries like € 451 € 440 Romania, Slovakia, and Czech Republic, driving a vehicle is relatively cheap • The average cost across the European markets has remained Norway Netherlands Denmark Italy Belgium Spain Switzerland France Sweden Germany Portugal United Kingdom Austria Poland Czech Republic Slovakia Romania Greece largely unchanged compared with our 2018 results 4 1) Weighted for % of fuel type sold over Q1 2019
Wealthier countries tend to have higher costs Average TCO per country versus GDP per capita • Relative affordability of cars can be Average monthly TCO of all fuel types 1 € 900 better understood when comparing the € 850 average monthly TCO to GDP per capita NL € 800 IT per country € 750 DK BE ES • In the Netherlands & Italy the affordability NO € 700 CH PL SE is relatively low with the average TCO € 650 DE FR being relatively high compared to the CZ AT € 600 GDP RO SK € 550 UK • For Greece and the UK, the average € 500 TCO is relatively low compared to GDP € 450 GR indicating that driving a vehicle in these € 400 countries is relatively cheap € 5,000 € 25,000 € 45,000 € 65,000 € 85,000 GDP per capita 5 1) Weighted for % of fuel type sold over Q1 2019
In Norway and the Netherlands electric is more affordable than petrol or diesel Electric Average monthly total cost of ownership in top eight countries Besides Norway, electric vehicles are now also 100% = average within each country in Q1 2019* nearing parity in terms of cost in the Diesel Netherlands compared to petrol and diesel Petrol €974 €937 vehicles. The main contributors to this trend €851 €900 €833 are: €872 €846 €821 €760 €804 €806 €794 €783 €762 - The increased fuel cost of diesel and petrol €683 €676 - The high registration and road taxation for €644 €587 €643 €596 diesel specifically. €598 €576 €567 - The subsidies and tax breaks in place for €520 electric vehicles Even in countries where electric is more expensive than in petrol or diesel like Sweden, we can see demand for electric vehicles increasing because of favorable Benefit-in-kind taxation for electric vehicles. Norway Netherlands United Denmark Italy Sweden Germany France Kingdom *the cost levels are determined by comparing the same basket of vehicles per fuel type across countries. Please be aware that a like for like comparison is not possible between EV and Diesel/Petrol since 6 range, horsepower, and comfort levels are different for EVs than for diesel/petrol vehicles.
Average monthly total cost of ownership The TCO breakdown of the three fuel types across all countries compared Depreciation Average of Fuel Average of Maintenance, repair, road assistance & tires Average of Road tax + VAT Average of Insurance & Accident Management Average of Interest Electric 52% 17% 7% 12% 6% 6% Diesel 39% 20% 15% 13% 8% 5% Petrol 32% 20% 21% 13% 9% 5% 7
Average monthly total cost of ownership totals Interest Electric RMT Insurance Fuel Road tax + VAT €995 €991 €974 €959 Depreciation €1,000 €900 €872 €858 €854 €847 €846 €834 €833 €833 €825 €806 €804 €900 €800 €676 €656 €700 €600 €500 €400 €300 €200 €100 € - 8
Average monthly total cost of ownership Diesel €1,000 €937 Totals Interest €900 RMT Insurance €821 €762 Fuel Road tax + VAT €800 €691 €683 €643 €632 €598 €595 €591 €576 €567 €562 €549 €515 €486 Depreciation €700 €600 €500 €410 € 407 €400 €300 €200 €100 € - 9
Average monthly total cost of ownership Petrol €1,000 Totals Interest €851 €900 €794 €783 €760 RMT Insurance €800 Fuel Road tax + VAT €700 €644 €632 €613 €596 €587 €567 €538 €527 €520 Depreciation €600 €477 €461 €449 €446 €445 €500 €400 €300 €200 €100 € - 10
Disclaimer This material has been approved solely by, and is the responsibility of LeasePlan Corporation N.V. (“LPC”) on the basis of the sources as listed herein and information provided by LPC. LPC makes no representation or warranty (express or implied) of any nature, nor does it accept any responsibility or liability of any kind, with respect to the accuracy or completeness of any of the information or opinions in this material. The information contained in this document is derived from sources that have not been independently verified. LPC gives no undertaking and is under no obligation to provide the recipient with access to any additional information or to update this document or to correct any inaccuracies in it which may become apparent, and it reserves the right, without giving reasons, at any time and in any respect to amend or terminate the information described herein. Except in the case of fraudulent misrepresentation, neither LPC nor any of its affiliates, advisers or representatives shall have any liability for any direct, indirect, consequential or other losses or damages including loss of profits incurred by you or any third party that may arise from any reliance on (1) this document or for the reliability, accuracy, completeness or timeliness thereof or (2) for any other written or oral information made available by LPC in connection herewith or (3) any data which any such information generates. 11
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