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Detroit Is Most Expensive Place to Own a Car

August 1, 2005
It costs more to drive a car in Motown than in any other city in the country.

Car Ownership Costs
Detroit	$11,844
Philadelphia	$10,672
Los Angeles	$10,361
Boston	$9,660
Miami	$9,216
Baltimore	$9,125
Denver	$8,949
Houston	$8,467
Topeka, KS	$8,078
Grand Forks, ND	$7,423
Sioux Falls, SD	$7,401
Knoxville, TN	$7,399

Detroit, Philadelphia, and Los Angeles are the most expensive places to own and operate a typical 2006 mid-size vehicle, with yearly costs exceeding $10,360, according to Runzheimer International, a firm specializing in employee mobility reimbursement.

Driving a typical mid-size car (represented by a 2006 Ford 500 SEL 4-door sedan) in the Detroit area costs $11,844 per year with Philadelphia next at $10,672, and Los Angeles in third place at $10,361.

Expenses include operating costs such as fuel, oil, tires, and maintenance and ownership costs, defined as insurance, depreciation, and license/registration fees.

In sharp contrast, driving this same vehicle in Knoxville, Sioux Falls, and Grand Forks costs the owner approximately $7,400, representing a difference of nearly $4,500 between the most and least expensive locations.

The three highest cost cities all share one common factor -- high auto insurance rates. Detroit rates for liability, comprehensive, and collision insurance are nearly $5,162 annually; Philadelphia rates are $4,142; and Los Angeles rates are $3,225.

Maintenance costs also vary. Assuming normal service, maintenance and tires for a vehicle driven 60,000 miles over four years range from a high of 7.35 cents-per-mile in San Francisco to a low of 4.69 cents-per-mile in Bismarck.

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