Search 81,393 tutors
Ask a question
0 0

what are the fixed costs to operate a vehicle

Tutors, please sign in to answer this question.

2 Answers

I disagree with gas as a fixed cost. Gasoline is a variable cost based upon miles driven. Fixed costs are incurred regardless of usage. In this case, these are the costs associated with just owning the car, even if it is parked in your garage and never drives. Jessica is correct that insurance, registration, licenses, taxes, depreciation, and interest on the note are fixed. However, I believe that gasoline and maintenance are variable operating costs that increase with the act of driving the car.