DETROIT, PHILADELPHIA & LOS ANGELES MOST COSTLY CITIES; SIOUX FALLS, RALEIGH & BISMARCK MOST ECONOMICAL
September 26, 2007
Detroit, Philadelphia, and Los Angeles are the most expensive places to own and operate a typical 2008 mid-size vehicle, with yearly costs exceeding $10,700, according to the latest analysis by Runzheimer International, the Wisconsin-based firm specializing in total employee mobility.
Driving a typical mid-size car in the Detroit area costs $12,318 per year with Philadelphia next at $11,159, and Los Angeles in third place at $10,739. Expenses include operating costs (fuel, oil, tires and maintenance) and ownership costs (insurance, depreciation and license & registration fees).
In sharp contrast, driving this same vehicle in Sioux Falls, Raleigh, and Bismarck costs the owner approximately $8,000, with a cost difference of $4,434 between the most and least expensive locations.
The three highest cost cities in Runzheimer's analysis of more than 100 U.S. cities all share one common factor - - high auto insurance rates. Detroit rates for liability, comprehensive, and collision insurance are $4,858 annually; Philadelphia rates are $3,678; and Los Angeles rates are $2,969.
There is a wide variation in the cost of vehicle maintenance across the country. Assuming normal service, maintenance and tires for a vehicle driven 60,000 miles over four years range from a high of nearly 7.5 cents-per-mile in San Francisco, California to a low of 4.6 cents-per-mile in Bismarck, North Dakota.
Runzheimer’s analysis clearly shows that automobile ownership and operating costs vary significantly depending upon where a person drives. As a result, for the individual driver, it’s helpful to calculate annual vehicle expenses to allow for proper budgeting and planning. For organizations that reimburse dozens or even hundreds of employees who operate their personal vehicles for business, establishing accurate driving costs becomes critical.
Table 1: Annual Vehicle Costs in Select U.S. Locations*
| State |
Location |
Total Annual Costs |
| MI |
Detroit |
$12,318 |
| PA |
Philadelphia |
$11,159 |
| CA |
Los Angeles |
$10,739 |
| IL |
Chicago |
$ 9,475 |
| NY |
Buffalo |
$ 9,120 |
| TX |
Fort Worth |
$ 8,978 |
| ND |
Bismarck |
$ 8,028 |
| NC |
Raleigh |
$ 7,986 |
| SD |
Sioux Falls |
$ 7,884 |
*The costs above are based on a 2008 Ford FUSION SEL FWD, 3.0 0L 6 CYL 4-door sedan equipped with features such as automatic transmission, AM-FM stereo with CD player, speed control, air conditioning, tilt steering wheel, driver and passenger power seats, air bags, aluminum wheels, keyless entry, rear window defroster, power door locks and windows, and anti-lock brakes. Costs include operating costs: fuel, oil, tires and maintenance; and fixed costs: insurance, depreciation, taxes and license fees. Factors are based on operating the vehicle for four years with an average of 15,000 miles driven per year within a 50 mile-radius of the city.
About Runzheimer International
Founded in 1933, Runzheimer International serves 60 percent of the Fortune 500. Runzheimer International provides a full suite of employee mobility products and services that can be tailored to specifically meet customers’ needs. The information and services we provide can be applied by companies and government agencies for business vehicle programs, employee relocation, compensation, international assignments, business travel, and virtual office programs.
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For more information, contact Luella Dooley at Runzheimer International, Runzheimer Park, Rochester, Wisconsin 53167, 262.971.2277, ljd@runzheimer.com, www.runzheimer.com.
