Ownership7 min readUpdated 5 Aug 2026
Hidden ownership costs explained
Beyond the sticker price — fuel, insurance, service, tyres, and depreciation over 5 years.
Purchase price is only the beginning
Over 5 years, running costs often equal or exceed the car's purchase price. Fuel is the biggest variable — tied to how much you drive. Depreciation is the largest single line item most buyers ignore.
Insurance renewals add up
First-year insurance is bundled in on-road price. From year 2, you pay 15–25% less annually as IDV drops — but it is still ₹15,000–40,000/year depending on car value and city.
Service and tyres
Scheduled service costs vary wildly by brand — mass-market brands may charge ₹5,000–8,000 per service; premium brands ₹15,000+. Tyres every 40,000–50,000 km cost ₹20,000–60,000 for a set.
Frequently asked questions
What is a good cost per km?+
For mass-market cars, ₹5–9/km all-in over 5 years is typical. SUVs and premium brands run ₹8–14/km. EVs can be ₹3–6/km if you drive enough km to offset upfront premium.
Which brand has cheapest maintenance?+
Generally Maruti, Hyundai, and Tata service networks are affordable. European brands cost more per service. Check scheduled service menu before buying.
How much does depreciation cost?+
Indian cars typically retain 45–55% value after 5 years. A ₹15 lakh car may lose ₹7–8 lakh in depreciation alone — the single biggest cost.