What’s the TCO on a Brazilian car?
Considering total cost of ownership (TCO), cars are quite expensive for the average Brazilian when compared to other regions of the world like Europe and the United States.
Besides the purchase price, there are several other costs involved. According to a study carried out by Brazilian ride-sharing startup Zumpy, a 30-year old Brazilian male with no kids driving a standard sub-compact car spends about R$1,150 (US$296) per month on vehicle expenses, just over half the average salary.
“This includes IPVA (annual tax), insurance, general maintenance, interest on financing, and gasoline for an average commute of 38km per day,” Zumpy executive Leopoldo Vieira told Global Fleet in an interview.
This does not include any surprise expenses which may come up from time to time, added Vieira who is the company’s director of client success, marketing, and sales.
Zumpy is currently in its third year of operation and generating approximately 500,000 reais in annual revenue. “We are just a baby right now but intend on growing much more. Thankfully, Orbi Conecta is helping us with business connections,” said Vieira.