Lada Iskra Ownership as Costly as Taxi Rides, Experts Find
The agency «Avtostat» calculated the cost of owning the cheapest Lada Iskra priced at 1.277 million rubles (approximately $14,200 at current rates) with an 8-valve engine and manual transmission in the Comfort trim. With the selected parameters, expenses will amount to from 22 thousand rubles per month (about $244 at current rates). Let«s break down what makes up such an impressive sum.
By the way, the selected trim is the most affordable, but it is unlikely to be popular: it lacks seat and mirror heaters, air conditioning, and a stereo, meaning it«s a version akin to the »Zhiguli«. Usually, dealers have minimal stocks of such cars, and the emphasis is on more expensive versions. In the case of the Iskra, it»s around 1.5–1.6 million rubles (approximately $16,700–$17,800 at current rates).
Experts from «Avtostat» 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 (approximately $15,400 at current rates), which exceeds the cost of the car. Per month, depending on the region, one will have to spend 22–23 thousand rubles (about $244–$256 at current rates), and per kilometer of mileage will cost about 14 rubles (approximately $0.16 at current rates). At the same time, relatively favorable parameters for compulsory motor third-party liability insurance (OSAGO) were chosen: age — 35 years, experience — 10 years.
The car owner will spend the most on gasoline — 556 thousand rubles (approximately $6,200 at current rates), or 5.6 rubles per kilometer (about $0.06 at current rates). Another 408 thousand rubles (about $4,500 at current rates) is the loss of the car«s value, meaning, according to Avtostat, the Iskra will depreciate by a third over five years. The remaining expenses also amount to around 400 thousand rubles (about $4,400 at current rates) — these are insurance, taxes, maintenance, and tires.
The editorial board adds that car expenses will be higher if purchased on credit. Thus, according to the Lada website, bank rates are 24–33%. With subsidized loans, they can decrease to 21% per annum.
If you take the Iskra in the cheapest version without air conditioning with a 50% down payment (639 thousand rubles, approximately $7,100 at current rates), the overpayment on the loan over five years will be about 400 thousand rubles (about $4,400 at current rates). The monthly payment will be 17 thousand rubles (about $189 at current rates), of which in the first year, more than 10 thousand rubles (about $111 at current rates) will go towards paying bank interest. To this will be added the costs of comprehensive insurance (CASCO).
It turns out that operating even the most affordable Russian car costs about 1,000 rubles per day (approximately $11 at current rates, considering working days). If you live close to work or school, this amount is sometimes enough to take a taxi or use car-sharing. Owning and operating your own car, even in the low-cost segment, is increasingly becoming a luxury.
Previously, we told how much it would cost to operate the Iskra as a taxi. The model«s concept is controversial, and here»s why.
