DETROIT, PHILADELPHIA & LOS ANGELES MOST COSTLY CITIES; SIOUX FALLS, BISMARCK & GRAND FORKS MOST ECONOMICAL
Rochester, WI — 12/2/2008 — Detroit, Philadelphia, and Los Angeles are once again the most expensive places to own and operate a 2009 mid-size vehicle, with yearly costs exceeding $13,000, according to the latest analysis by Runzheimer International, the Wisconsin-based firm specializing in Total Employee Mobility®.
Driving a mid-size car in the Detroit area costs $13,199 per year with Philadelphia next at $12,265, and Los Angeles as the third most expensive at $12,068. Operating expenses include operating costs (fuel, tires and maintenance) and ownership costs (insurance, depreciation, license and registration fees).
In sharp contrast, driving this same vehicle in Sioux Falls, Bismarck, and Grand Forks costs the owner under $9,000. The cost difference between the most expensive (Detroit costs $13,199) and the least expensive (Sioux Falls costs $8,763) is $4,436.
The three highest cost cities in Runzheimer's analysis of more than 100 U.S. cities all share high auto insurance rates as one common factor. Detroit rates for liability, comprehensive, and collision insurance are $4,759 annually; Philadelphia rates are $3,734; and Los Angeles rates are $3,021.
There is also a wide variation in the cost of vehicle maintenance across the country. Assuming labor rates and normal service, maintenance and tires for a vehicle driven 60,000 miles over four years range from a high of nearly 7.82 cents-per-mile in San Francisco, California to a low of 5.03 cents-per-mile in Bismarck, North Dakota.
Runzheimer’s analysis illustrates that automobile ownership and operating costs vary significantly depending where a person lives and 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 mobile employees who operate their personal vehicles for business, establishing accurate driving costs is critical.
Annual Vehicle Costs in Select U.S. Locations*
| State |
Location |
Total Annual Costs |
| MI |
Detroit |
$13,200 |
| PA |
Philadelphia |
$12,266 |
| CA |
Los Angeles |
$12,069 |
| NJ |
Newark |
$11,684 |
| RI |
Providence |
$11,443 |
| TN |
Knoxville |
$ 9,077 |
| OH |
Dayton |
$ 9,049 |
| WI |
Eau Claire |
$ 8,988 |
| ND |
Bismarck |
$ 8,926 |
| SD |
Sioux Falls |
$ 8,764 |
*The costs above are based on a 2009 Ford FUSION SEL FWD, 3.0L 6 CYL 4-door sedan equipped with features such as automatic transmission (6 speed), AM-FM stereo with 6 disc CD changer and MP3, cruise control, automatic air conditioning, tilt and telescoping steering wheel, driver power seats, dual front air bags, aluminum wheels, keyless entry, rear window defroster, power door locks and windows, leather seats, moon/sunroof, security system, traction control, and anti-lock brakes. Costs include operating costs: fuel, oil, tires and maintenance; and fixed costs: insurance, depreciation, taxes, license and registration 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.
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About Runzheimer International
Founded in 1933, Runzheimer International serves 60 percent of the Fortune 500 and numerous government agencies. Recognized for providing innovative solutions relating to Total Employee Mobility, Runzheimer is the global leader in workforce mobility programs including business vehicle, business travel, corporate aircraft, employee relocation and compensation, and virtual office.
For more information, contact Julia Baldus at Runzheimer International, Runzheimer Park, Rochester, Wisconsin 53167, (262) 971-2442, jpb@runzheimer.com, www.runzheimer.com.
