At times during high gas prices, I receive the question everyday: If you ever dump your old car that gets bad gas mileage and get another one with great economy fuel?
The short solution is that to do so is generally a false economy. Let me explain.
Every year, AAA releases its directory the price to control a car or truck. The average car costs 61 cents per mile to put on the road. That’s just what would cost for a rough equivalent if you had a cab meter running within your car everytime you drove it.
Picture this: I’ve got hankering to acquire a bagel which has a drink ($3 adjust) most morning, but roundtrip it’s of a 9-mile drive. That puts the effective valuation on travel alone at $4.55, which makes it a nearly $8 transaction overall!
We don’t often take into account exactly what it costs to put a car on your way in those terms. But time for the question I started out with. Of their 61 cents, gas is in charge of 14 cents and 47 cents are earmarked for other outlays per mile, including depreciation and insurance.
Depreciation may be the decrease in value a car or truck has after a while. Having an older car, the depreciation cycle is defined as over past around 6 years. The largest expenses isn’t there anymore. Sure, the buying price of repair climbs up for an older vehicle, though not nearly enough to counteract that.
The one circumstance when it is sensible to dump your old gas guzzler is when you’re an ultra-high mileage commuter. The standard American drives 29 miles on a daily basis. So when you drive 50 miles daily, then getting a new fuel-efficient ride is wise.
Here’s the really is a good idea: In case you have a 6-year-old gas guzzler you get eliminated by a 4, 5 or 6-year-old fuel efficient vehicle. You’re far around the depreciation curve plus the math works the spot where you cut costs almost from the first mile.
Bear in mind, as aggravated once we get at the gas pump, it’s a small a part of the price of your car traveling every mile!