Economy and car ownership – Costs and tips
Owning and running a car involves many costs. Understand the main cost drivers, how they develop over time, and strategies to reduce expenses.
Total cost of ownership
Typical annual and monthly costs:
| Cost type | Annual (NOK) | Monthly (NOK) |
|---|---|---|
| Depreciation | 25 000 | 2 083 |
| Fuel / energy | 12 000 | 1 000 |
| Insurance | 8 000 | 667 |
| Maintenance & repairs | 5 000 | 417 |
| Tolls & parking | 3 000 | 250 |
| Taxes & fees | 1 500 | 125 |
| Total | 54 500 | 4 542 |
Key drivers
- Depreciation is often 30–50% of annual cost
- Fuel/energy depends on distance, style and price
- Insurance varies by driver, location, vehicle
- Maintenance grows with age and mileage
For eco‑techniques that cut energy cost, see Eco‑driving .
Financing and depreciation
Common models:
| Model | Advantages | Disadvantages |
|---|---|---|
| Cash purchase | No interest if paid upfront | Large capital outlay |
| Car loan | Ownership, predictable payments | Interest and fees |
| Leasing | Fixed monthly cost, no resale risk | No ownership, km limits |
Insurance, taxes and fees
| Item | Description |
|---|---|
| Car insurance | Liability and optional hull; premiums depend on deductible and bonus |
| Annual taxes | Weight and emissions based |
| VAT / re‑registration | One‑off fee on ownership changes |
See also Car insurance .
Car choice and alternatives
See First car choice .
| Ownership model | Pros | Cons |
|---|---|---|
| Private ownership | Full control and flexibility | Responsible for maintenance and value loss |
| Leasing | Fixed monthly price incl. service | No ownership, restrictions |
| Car loan | Ownership with financing | Interest and loan costs |
| Car sharing | Pay per use, no fixed cost | Availability and access |
Ways to save
- Choose models with good resale values
- Share rides or use car sharing
- Drive efficiently; see Eco‑driving
- Maintain the vehicle; see Maintenance
- Plan trips: combine errands and avoid congestion; see Trip preparation
Summary
This article summarises TCO for cars in Norway. Apply these strategies to cut your transport costs and make better decisions.
See also Driver’s licence, registration and insurance .