The hidden costs of car ownership: why paying for a car that sits 22 hours a day makes no sense

Imagine paying for something every day that you use for an hour — then leave it parked, idle, and slowly draining value for the other 23. For many of us, that something is a car. In Luxembourg (and much of Europe), private cars spend the vast majority of their time doing nothing: sitting in a garage, in a parking space, or in front of a supermarket. If your vehicle is effectively used for short commutes, errands, or the occasional weekend trip, it’s worth asking: are you paying for convenience or for wasted money?

The obvious costs — and the invisible ones hiding behind them

When you add up the visible expenses, car ownership already looks pricey: purchase payments or loan interest, fuel, insurance, maintenance, taxes, and parking. But that’s only the start. The invisible costs are the ones that quietly add up:

• Fixed availability cost: You pay for 24/7 access to a machine you use intermittently. That convenience is expensive insurance you rarely need.
• Parking & storage: In cities and suburbs parking is a real cost — both paid parking and the time spent hunting for a space. At home, having dedicated parking can raise housing costs or be impossible.
• Depreciation: A car loses value from the moment you drive it off the lot. Depreciation is often the single largest ownership cost, and you pay it whether you drive 100 km or 10,000 km.
• Underutilized maintenance and insurance overhead: Parts wear out with time, not only with use. Even parked cars need occasional servicing; insurance premiums don’t shrink because your car is idle.
• Opportunity cost: The money tied up in the car — the down payment, the loan balance, the time you spend on upkeep — could be invested, saved, or spent on experiences.

The “22 hours a day” paradox

Saying a car “sits 22 hours a day” might sound like an exaggeration — but it’s not far from reality for many commuters and city dwellers. If you drive to work, do a few errands, and spend evenings and nights at home, you’re likely using the car for a sliver of the day. Yet you pay as if you need it full-time.

That mismatch — paying for constant access to a resource you use rarely — is where car sharing shines. Instead of owning and covering all costs 24/7, you pay only when you actually need the vehicle.

Real-life savings: why car sharing can be smarter

Car sharing isn’t just about saving on the sticker price. Here’s how it helps trim the hidden costs:

• Pay-as-you-go model: You pay for usage: minutes, hours, or days.You avoid depreciation, loan interest, and many fixed overheads.
• No maintenance headaches: Shared fleets are professionally maintained. You don’t schedule oil changes, worry about tires, or handle repair bills.
• Insurance included: Liability and basic insurance are usually included in the service, so you don’t carry a separate policy.
• Access to different car types: Need a van for a move or a compact for city errands? Rent what you need, when you need it — cheaper than owning multiple vehicles.

When ownership still makes sense

I’m not arguing that everyone should ditch their car tomorrow. Ownership is still the right call when:

• You regularly travel to remote areas where shared cars aren’t available.
• You frequently haul heavy loads or need a specialized vehicle.
• You value spontaneous long road trips that aren’t constrained by availability.
• You enjoy the identity, comfort, or hobby aspects of owning a specific car.

But for many urban residents and commuters in Luxembourg — where distances are short and public transport plus carsharing options are strong — those ownership benefits are often overestimated.

How to decide: three quick checks

1. Track your usage throughout the month. How many hours do you actively spend behind the wheel? How many trips are short errands?
2. Make a list of fixed expenses. Loan payments, insurance, taxes, and parking—would these be acceptable if you used your car much less frequently?
3. Compare with local options. Research hourly or daily car-sharing rates for typical trips you take. Consider convenience and time savings.

Final thought: convenience doesn’t have to cost a fortune

Owning a car can give you a sense of freedom, but only if the benefits outweigh the costs. For many Luxembourg residents, a balanced approach is a more sensible choice: relying on public transport and car sharing for daily trips, and resorting to renting or borrowing a car for occasional long journeys. This way, you retain your freedom of movement without incurring the high costs of owning a car that sits idle most of the time.