Experts: Owning Lada Iskra as costly as taxi rides

The Autostat agency calculated the cost of owning the cheapest Lada Iskra, priced at 1.277 million rubles (about $17,000 at current rates), with an 8-valve engine and manual transmission in the Comfort trim. With the selected parameters, expenses amount to from 22 thousand rubles (about $290) per month. Let«s break down where this impressive sum comes from.

By the way, the chosen trim is the most affordable, but it is unlikely to be popular: it lacks seat and mirror heaters, air conditioning, and a stereo, making it a basic version reminiscent of the Zhiguli (a classic Soviet-era car). Typically, dealer stocks of such cars are minimal, and the focus is on more expensive versions. For the Iskra, prices are around 1.5–1.6 million rubles (about $20,000–$21,300 at current rates).

Experts from Autostat concluded that over five years of use with an average annual mileage of 20,000 km, the owner«s expenses will amount to 1.383 million rubles (about $18,400 at current rates), exceeding the car»s cost. Depending on the region, monthly costs will be 22–23 thousand rubles (about $290–$310), and per kilometer will cost about 14 rubles (about $0.19). The calculations used relatively favorable parameters for compulsory motor insurance (OSAGO): driver«s age — 35 years, experience — 10 years.

The car owner will spend the most on gasoline — 556 thousand rubles (about $7,400 at current rates), or 5.6 rubles per kilometer (about $0.07). Another 408 thousand rubles (about $5,400) is the loss in the car«s value, meaning, according to Autostat estimates, the Iskra will depreciate by a third over five years. Other expenses also amount to around 400 thousand rubles (about $5,300) — these are insurance, taxes, maintenance, and tires.

The editorial note adds that car expenses will be higher if purchased on credit. According to the Lada website, bank interest rates are 24–33%. With subsidized loans, they can drop to 21% per annum.

If taking the cheapest Iskra version without air conditioning with a 50% down payment (639 thousand rubles, about $8,500 at current rates), the overpayment on the loan over five years will be about 400 thousand rubles (about $5,300). The monthly payment will be 17 thousand rubles (about $230), of which in the first year, more than 10 thousand rubles (about $130) will go towards paying bank interest. To this, expenses for comprehensive insurance (casco) will be added.

It turns out that operating even the most affordable Russian car costs about 1,000 rubles per day (about $13 at current rates, considering working days). If you live close to work or school, this amount is sometimes enough to take taxis or use car-sharing services. Operating one«s own car, even in the low-cost segment, is increasingly becoming a luxury.

Previously, we reported on how much it costs to operate the Iskra as a taxi. The model«s concept is controversial, and here»s why.