How the numbers work: vehicles and travel

Fuel or Charging

1. Litres used = distance (km) × fuel use (L/100km) ÷ 100
2. Fuel cost = litres × price per litre

Example: 12,000 km × 8 L/100km ÷ 100 = 960 L; × $2.60 = $2,496 a year

🔢 Worked Examples

1. Fuel: 12,000 km × 8 ÷ 100 = 960 L; × $2.60 = $2,496
2. Rego (petrol, 12 months): $181
3. WOF: one check a year, about $60
4. Insurance (illustrative): $1,000
5. Servicing and repairs (illustrative): $600
6. Tyres: a $800 set every 40,000 km, so 12,000 ÷ 40,000 × $800 = $240

Running cost, excluding depreciation: $4,577 a year

🔢 Worked Examples

1. RUC: 20,000 km ÷ 1,000 × $76 = $1,520
2. Diesel: 20,000 km × 7 ÷ 100 = 1,400 L; × $2.10 = $2,940
3. Rego (diesel, 12 months): $249
4. WOF: about $60
5. Insurance (illustrative): $1,200
6. Servicing and repairs (illustrative): $800
7. Tyres: a $1,200 set every 40,000 km, so 20,000 ÷ 40,000 × $1,200 = $600

Running cost, excluding depreciation: $7,369 a year

1. Car A fuel over 5 years
2. 75,000 km × 11 ÷ 100 = 8,250 L; × $2.60 = $21,450
3. Car B fuel over 5 years
4. 75,000 km × 5 ÷ 100 = 3,750 L; × $2.60 = $9,750
5. Fuel saving with Car B
6. $21,450 − $9,750 = $11,700
7. Extra you paid for Car B

$18,000 − $6,000 = $12,000, almost exactly cancelled by the $11,700 fuel saving

1. Running cost only
2. $4,577 ÷ 12,000 km = $0.381 per km, about 38 cents
3. Including depreciation
4. ($4,577 + $2,000) ÷ 12,000 km = $6,577 ÷ 12,000

= $0.548 per km, about 55 cents

The cost stack

1. Auction purchase price: $8,000.00
2. Japan-side fees and inland transport: $800.00
3. Shipping and marine insurance: $1,800.00
4. Landed value: $8,000.00 + $800.00 + $1,800.00 = $10,600.00
5. GST at 15% on the landed value: $10,600.00 x 15% = $1,590.00
6. Customs entry and biosecurity: $250.00
7. Entry certification and compliance: $700.00
8. Registration and plates: $400.00

$13,540.00 before any Clean Car Standard charge.

The cost stack

1. Total cost: $13,540.00
2. Less the auction price: $13,540.00 - $8,000.00 = $5,540.00
3. Added cost as a share of the purchase price: $5,540.00 / $8,000.00 = 69.3%

Roughly 69 percent on top, before the CO2 charge is even calculated.

Entry certification is a gate, not a formality

1. Emissions and frontal impact standards must be met for the vehicle's age and origin.
2. Structural damage can fail a vehicle outright, and repaired accident damage is scrutinised.
3. Odometer verification is part of the process, and inconsistency is a serious problem.
4. The CO2 and weight data for the Clean Car Standard are recorded here.

A vehicle that fails may need work, may be unable to be certified at all, and cannot be registered meanwhile.

Is it worth it

1. Price the same model locally, complied and registered, as your baseline.
2. Build the full import stack, including the CO2 charge for that specific vehicle.
3. Add a contingency for certification work, because some is common.
4. Compare the totals, not the auction price against the local price.
5. Weigh the risk, since the import carries certification risk the local car does not.

The import wins on unusual specifications more often than on common ones.

The division sum

1. Depreciation: $80,000.00 - $55,000.00 = $25,000.00 over five years
2. Depreciation per year: $25,000.00 / 5 = $5,000.00
3. Plus running costs: $5,000.00 + $4,000.00 = $9,000.00 a year

$9,000.00 a year before a single night is spent in it.

The division sum

1. At 30 nights a year: $9,000.00 / 30 = $300.00 a night
2. At 60 nights a year: $9,000.00 / 60 = $150.00 a night
3. At 90 nights a year: $9,000.00 / 90 = $100.00 a night

All three exclude fuel, camp fees and ferries.

Buying second hand

1. Check the self-containment register for that specific vehicle, not the seller's paperwork.
2. Check for water damage around windows, roof seams and the shower, which is the expensive fault.
3. Check the gas certification and when the appliances were last inspected.
4. Check the weight rating against your licence class and against what you intend to carry.
5. Get a specialist inspection, since a general mechanic will assess the vehicle and not the house on it.
6. Check for money owing on the personal property securities register before paying.

Water damage and outstanding finance are the two that cost the most to discover late.

Costs Abroad Can Be Huge

1. A serious illness or accident overseas needs treatment
2. You may also need evacuation back home
3. Without cover, you pay these costs yourself
4. With cover, the insurer handles the large medical bills

A Simple Approach

1. 1. Prioritise high or unlimited overseas medical cover
2. 2. Declare any pre-existing conditions honestly
3. 3. Check cancellation and luggage limits suit your trip
4. 4. Read the exclusions, including activities and alcohol
5. 5. Buy when you book, not at the airport

💵 How Travel Money Cards Work

1. Load the card with New Zealand dollars converted to chosen currencies
2. Spend from the loaded currency balance while travelling
3. The locked-in rate applies, so the cost is predictable
4. Reload if you need more, at the rate available then

A Sensible Travel Money Plan

1. Check the overseas fees on the cards you already have
2. Compare against a travel money card total cost
3. Carry a backup card and a little local cash
4. Tell your bank you are travelling so cards are not blocked
5. Avoid leaving large balances stranded on a travel card

A Simple Approach

1. 1. Decide the level of cover that fits your car's value
2. 2. Hold at least third party for the risk to others
3. 3. Choose an excess you could afford at claim time
4. 4. Decide agreed vs market value for your situation
5. 5. Read exclusions, especially for modifications and drivers