According to a study conducted by scientists from the RWI Leibniz Institute for Economic Research, the University of Mannheim and Yale University, car owners in Germany dramatically underestimate the cost of a car.

Estimates for the cost of taxes, insurance, depreciation and maintenance are off by as much as 50 percent. Car owners estimate the monthly costs to be around 221 Euros, which is 52% of the actual costs.

The graphic above shows the differences between the specific cost categories. Only when people were asked to estimate the fuel costs did perception and reality nearly align.

As a result, alternatives to standard cars, like electric vehicles, public transport or sharing services, are perceived as less attractive. For this reason, the researchers think that clarifying the actual costs associated with owning a car would encourage shifts in traffic patterns. Initial research shows that more transparency in the costs of using a private car would increase the use of public transport by up to 12 percent, while also reducing car ownership by 37 percent. With this change alone, 37 million tonnes of emissions could be reduced annually in Germany.

This study is one of the very first to address this issue and offers exciting potential ways to rethink mobility.