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I Actually Bought Tw

o Cars in Five Years?!BY Ipsos

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02

Ipsos TCO survey found that the costs of Mondeo in 5 years were even higher than a new car, 80,000 more than Accord.

Recently, Ipsos, the world’s leading market research company, released its TCO survey data. TCO, or total costs of ownership, refers to the total expenditure of a vehicle besides the purchase. TCO-5 is TCO in five years, including costs for maintenance, insurance, fuel, second-hand car depreciation, etc. The data shows besides new car concessions or fuel consumption, the total costs of ownership is far beyond our imagination.

The survey involved the comparison of 7 Class-B models in 5 major expenditures, in which residual value losses made up about 40%, followed by fuel and then the insurance, though the insurance was subject to the actual transaction price. Maintenance came out the 4th, and the annual inspection could be ignored. The maintenance costs car owners concerned most about were way low as compared with others.

O v e r a l l , d e s p i t e i t s l a r g e s t proportion in TCO, the residual value losses remained the most invisible to car owners

Brand

Shanghai Volkswagen

GAC Honda

Guangzhou Toyota

Dongfeng Nissan

FAW-Volkswagen

Shanghai GM Buick

Changan Ford

Passat B6

Accord

Camry

Teana

Magotan

LaCrosse

Mondeo

1.8T

2.4L

2.5L

2.5L

1.8T

2.4L

2.0L

182,100

190,400

200,500

203,300

202,600

219,200

230,900

2011

2012 LX

2012

2012 XL

2012

2012 SIDI

2012 GTDI240

Series Model Naked car price Displacement

Class-B Cars TCO-5 Cost Distribution

39.59%33.11%

0.3%7.68%

19.31%Insurance

Fuel costs

Maintenance costs

Annual inspection

fee

Used car depreciation fee

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As for TCO, Accord was the lowest, followed by Accord, Camry, Magotan, Teana, Passat B6, LaCrosse and Mondeo, with an average TCO-5 of RMB 196,895, or RMB 2.19 per kilometer.

Of all the models surveyed, Accord excelled in all the costs that totaled RMB 170,257 in 5 years. Mondeo was the highest in TCO-5, RMB 81,000 more than Accord and more expensive than buying a new car.

Characteristics of American cars and Japanese cars were also reflected in TCO. As is known to all, the latter has led the world in economy, be it in terms of fuel or maintenance costs, while the former remains high in fuel consumption, an established fact despite certain improvement. Japanese cars have been the best-selling cars for years around the globe, which again proves the economy of a car is a top consideration for consumers.

Of all these models, Accord came at the bottom in TCO, and Mondeo, the highest

TCO-5 Overall RankingTCO-5 (yuan)

Accord

Camry

Magotan

Teana

Passat B6

LaCrosse

Mondeo

170,257

177,292

181，069

191,234

192，526

214,565

251，320

Terrible second-hand car hedge rate of Mondeo

TCO-5 Used Car Depreciation RateAccord was the best in value keeping, with 5-year depreciation of 30.5%; the 5-year depreciation rate was 56%

Accord 30% Magotan 33% Camry 35%

Passat B6 38% LaCrosse 39% Mondeo 56%

Teana 35%

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Further examination of the costs revealed that the second-hand car depreciation costs accounted for the largest proportion of TCO-5, followed by the costs of fuel, and then the insurance, but the latter was subject to the actual transaction price. Maintenance expenditure ranked 4th, and the annual inspection fee was basically negligible. A new car becomes a second-hand car after the delivery, and the 33.07% depreciation rate of Accord was the lowest. The depreciation rate of Mondeo was 51.29%, the highest in the 7 Class-B models. It was an immense invisible expenditure, and car owners will spend more to replace it for a new one in the future.

Accord

Maintenance costs Insurance Fuel costs Used car depreciation fee Annual inspection fee

Camry

Magotan

Teana

Passat B6

LaCrosse

Mondeo

8.29% 31.32% 36.97% 33.07% 0.35%

6.79% 21.01% 32.66% 39.20% 0.34%

7.10% 19.62% 36.21% 36.76% 0.31%

8.28% 20.68% 33.37% 37.33% 0.33%

9.67% 20.01% 34.33% 35.68% 0.31%

4.6% 15.96% 27.55% 51.29% 0.24%

9.34% 18.18% 32.86% 39.34% 0.28%

Depreciation costs not considered, Camry was the most economical model, and Teana cost the least on maintenance. With regard to fuel costs, LaCrosse came out the top, cost RMB 70,000 in 5 years. Camry was on the other end of the spectrum, lowest in fuel consumption and the corresponding fuel costs.

Accord

Maintenance costs Insurance Fuel costs Annual inspection fee

Camry

Magotan

Teana

Passat B6

LaCrosse

Mondeo

14,108 62,946 36,303 600

12,035 57,910 37,246 600

13,576 69,241 37,518 600

14,992 60,428 37,449 600

18,612 66,093 38,520 600

12,458 69,241 40,121 600

20,048 70,500 39,017 600

TCO-5 Excluding Depreciation 5-year Costs (yuan)

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TCO also indicated significant increase in maintenance costs after 40,000 km. Japanese cars remained at the bottom part in routine maintenance costs. After driving 80,000 km, these models differed little in the increased costs of wearing parts.

（yuan）2，500

2，000

1，500

1，000

500

01 2 3 4 5 6 7 8 9 （10,000 km）

Maintenance expenses

Accord Camry Teana LaCrosse MagotanPassat B6 Mondeo

（yuan）6，000

5，0004，000

3，000

2，000

1，000

01 2 3 4 5 6 7 8 9 （10,000 km）

Maintenance expenses

Maintenance: particularly for wearing parts, including accident paid by an insurance company. Wearing parts include air conditioning filter, spark plug, belt, gearbox oil, brake fluid, coolant, front brake pad, rear brake pad, front brake disc, rear brake disc, battery.

Accord Camry Teana LaCrosse MagotanPassat B6 Mondeo

Fuel Consumption and ExpenditureFuel Consumption TCO-5 Fuel Costs

Camry

Magotan

AccordPassat B6

MondeoTeana

LaCrosse

0510 6000030000015(L / 100 km) (yuan)

9.2

9.6

10.0

10.5

11.0

11.0

11.2

57，910

60，428

62，946

66，093

69，241

69，241

70，500

LaCrosse is 200 kg heavier than other models, hence the higher fuel consumption (see the figure below). The fuel consumption of Camry is the lowest, so is its fuel costs.

One can see the traits of different cars in the comparison of TCO. It is known to all that Japanese cars has led the world in economy, be it in terms of fuel or maintenance costs. It is easy to buy a car, but hard to keep it, for instance, Mercedes-Benz C200 and Volkswagen Passat are similar in purchase price, but the hidden costs vary in every day followed. A fake luxury car bought at a joint venture price? You will surely be proud of your choice in the entire car cycle.