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.