[V8] Gas hog V8s
Klein, Nathan P
nathan.p.klein at lmco.com
Wed Aug 31 11:00:06 EDT 2005
EXCELLENT post! Couldn't agree with you more. Liquidity rules! :)
-----Original Message-----
From: v8-bounces at audifans.com [mailto:v8-bounces at audifans.com] On Behalf
Of Mike Arman
Sent: Wednesday, August 31, 2005 9:39 AM
To: v8 at audifans.com
Subject: [V8] Gas hog V8s
With fuel approaching $3.00 per gallon, just out of curiosity, I ran
some interesting numbers.
Starting premises -
1)V8Q gets about 16mpg.
2) CNN/Money had a list of cars you can buy with payments of under
$200/mo (sometimes just under), real exciting stuff like Cavalier, Neon,
Aveo, etc, mostly stripped, and you couldn't get A/C in one of them if
you wanted to stay under $200/mo, and I'm guessing the fuel economy of
these cars is going to be 35 mpg? Which may be generous . . .
Anyway -
Fuel costs for V8Q - 16 mpg with $3.00 gas is a bit under 20 cents a
mile, fuel costs for 35 mpg is abut 8.5 cents a mile.
V8Q, 1,000 miles, $200 in fuel, 2,000 miles, $400 in fuel, 3,000 miles,
$600 in fuel, 4,000 miles, $800 in fuel.
Aveo (etc.), 1,000 miles, $85 in fuel, 2,000 miles, $170 in fuel, 3,000
miles, $255 in fuel, 4,000 miles, $340 in fuel.
Now we add the payment of $200 a month vs the Audi, which is free and
clear.
Audi cost - 1,000 miles = $200, 2,000 miles = $400, 3,000 miles = $600,
4,000 miles = $800.
Aveo cost - 1,000 miles = $285, 2,000 miles = $370, 3,000 miles = $455,
4,000 miles = $540.
The break-even point in mileage is therefore about 1,800 miles a month,
which is about 21,600 miles a year, at which point the strictly fuel
plus payment costs are about even.
But there is *much* more than that - there is capital cost and
opportunity cost on the Aveo, there is depreciation (which Audi owners
are VERY familiar with - but OUR cars are already just about fully
depreciated), and then there are the intangibles - safety, ride,
performance, comfort, support from THIS group, and so forth.
Basically, I'll want to see a lot more than numbers like the above
before I get rid of my V8Q. Personally, I drive about 1,000 miles a
month, so why the heck should I pay more money to drive a significantly
lesser car? Besides, I HATE car payments, and I don't ever want to have
one again, as long as I live. That alone is worth something, and if part
of the price of that is crawling under the car and getting dirty, hot
and sweaty once in a while, well, I can take a shower for a lot less
than $200.
Now, if we want to buy a NICE car, I've seen leases offered on entry
level WMBs (ugh) for $400 a month (after cap cost fees, tag, tax, title,
blah, blah blah) and after 36 months you have to give it back
- this is essentially just a long-term rental, and you still have to buy
fuel. No thanks, I'm keeping my V8.
Best Regards,
Mike Arman
90 V8, not just a car, an ADVENTURE!
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