Detroit is the nations costliest car ownership city

[Ripsnort]

I would have guessed LA....

(I've heard that the thiefs are so good in Detroit that they can steal your hub caps with the vehicle traveling...)
http://money.cnn.com/2005/07/29/Autos/costliest_car_ownership_cities/index.htm?cnn=yes

NEW YORK (CNN/Money) - It costs more to own a car in Detroit, an amazing $11,844 a year for a mid-sized sedan, than in any other city in the country, according to a new report comparing the cost of car ownership in various a U.S. cities.

Released Friday by Runzheimer International, a management consulting firm specializing in transportation reimbursement, the survey revealed that insurance, at $5,162 annually for liability, collision, and comprehensive coverage, is the biggest single reason that maintaining a car in the Motor City is so expensive.

Runzheimer calculates costs based on a fully loaded 2006 Ford Five Hundred SEL with a 3.0 liter, 6-cylinder engine. The calculation also assumes that the car is driven an average of 15,000 miles for four years within a 50 mile-radius of the city.

Philadelphians would pay nearly as much, $10,672 with $4,142 going to pay for insurance, as would Los Angelenos, at $10,361, including insurance costs of $3,225.

The same car would cost just $7,399 a year in Knoxville, Tennessee., a savings of $4,445 compared with Detroit.

Maintenance costs also vary quite widely, from a high of 7.35 cents-per-mile in San Francisco to a low of 4.69 cents-per-mile in Bismarck, North Dakota.

This list shows the car ownership costs of selected cities from around the country:

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

[Tarmac]

I wonder what else (besides insurance) they use to come up with those figures.  Since it's held to 15k miles everywhere, Detroit's lack of a mass transit system isn't a factor.

I guess repairs from crappy roads due to snow would factor in.  Can't think of much else that would up the costs, though.

[Ripsnort]

Originally posted by Tarmac
I wonder what else (besides insurance) they use to come up with those figures.  Since it's held to 15k miles everywhere, Detroit's lack of a mass transit system isn't a factor.

I guess repairs from crappy roads due to snow would factor in.  Can't think of much else that would up the costs, though.

the survey revealed that insurance, at $5,162 annually for liability, collision, and comprehensive coverage, is the biggest single reason that maintaining a car in the Motor City is so expensive.



Basically either theft or bad drivers. People can't make insurance claims for repairs due to bad roads.

[Gunthr]

I'd say auto theft is number one - inside the City of Detroit.  Hey, they steal road crash attenuators and manhole covers there,  auto theft is a given.

[Gunthr]

Oh yes, don't forget that they spread tons of salt on the streets in the winter - undercoating is big biz there.

[AdmRose]

Originally posted by Gunthr
Oh yes, don't forget that they spread tons of salt on the streets in the winter - undercoating is big biz there.

I talked with my insurance agent once about just this. She told me that the higher insurance rates are due to the fact that many of the drivers in the city are uninsured and that it costs them more when uninsured motorists get into accidents.

[J_A_B]

$5,000+ annually for insurance?  For a midzise V-6 Ford?  That's better than $20K in insurance over 4 years....for a car with barely more than a $20K pricetag.

I need to get into the insurance business; they're legally robbing people.


Regarding undercoating--

Don't waste your money on it if you drive something that's even remotely new.  Galvanized steel is widely used and is pretty resistant to corrosion on its own (unless of course you dent/gouge it).  In some cases undercoating actually causes vehicles to rust faster since a badly-applied undercoating can clog up holes and trap dirt and crap in the doors and various pieces of the frame and body.  



J_A_B

[StarOfAfrica2]

Heh, I'm not sure insuring cars in Detroit is a good business to be in, regardless of how much they charge.