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F1 is the most technologically advanced motor racing series in the world. Touted as the 'pinnacle of motorsports', Formula 1 captivates millions of fans around the world with its high-speed racing and cutting-edge engineering. However, all this comes with a staggering price attached to it.
Formula 1 cars are the most sophisticated and hence expensive machinery in the world. Although determining the exact price for an F1 car is a highly challenging task, various estimates indicate that in 2023, the cost lies between $10 million to $20 million. However, this does not include any associated expenses spent by the team on research and development, along with testing.
According to an estimate by Red Bull, the cost of a current race car is around $12 to $15 million.
The cost of a Formula 1 car varies with the components used to build it. The cost of the parts varies with the manufacturer who sells them. That's the reason most teams try to manufacture most of the parts in-house to reduce expenses.
Under the current cost cap regulations, a team is allowed to spend only $135 million for the 2023 season.
Here are the costs associated with the various parts of the car:
- Chassis: $2 million – $5 million
- Engine & transmission: $5 million – $10 million
- Electronics & wiring: $1.5 million – $2.5 million
- Suspension, wheels & tires: $2.5 million – $4 million
- Aerodynamics package (wings and diffusers): $2.5 million – $5 million
- Bodywork & paint scheme: at least $1 million
- Cockpit & safety equipment: at least $1 million
- Fuel tank: at least $500,000
The carbon fibre chassis is one of the costliest items on the list. However, it is the power unit and the transmission that empties the pockets of most F1 teams. The price for each of the three units allowed per season is put at around $10.6 million. The gearbox roughly costs around $400,000.
The high-tech steering wheel comes with a price tag of $50,000 and the set of wings (front and rear) at $200,000.
Currently, Pirelli is the sole tire supplier, providing 13 sets of tires to each driver for a weekend. According to F1 Chronicle, one set of tires is roughly worth around $2,700, with the overall cost being $35,000 per driver.
While building a Formula 1 car is an expensive endeavour, the efforts put into the R&D of these cars helps propel the automobile industry forward.
Exploring the F1 cost cap in 2023
The F1 cost cap aims at limiting the amount a team can spend on its cars over the course of a calendar year. For 2023, this limit is set at $135 million, which has to be strictly adhered to by all the teams. The financial ceiling helps to level the field between the rich and the poorer teams.
Here is the list of costs included in the cost cap:
- All parts of the car
- Team personnel salary
- Garage Equipment
- Spares
- Transport costs
- Miscellaneous costs related to the car
Meanwhile, the cost cap doesn't cover expenditures on these items:
- Driver salaries
- Wages of the three highest-paid staff members
- Travel costs
- Marketing costs
- Property and legal costs
- Entry and license fees
- Parental and sick leave payments
- Employee bonuses and staff medical benefits
It is also important to note that since engines are the costliest components in the car, they are covered under a different set of cost regulations.
