[V8] running the numbers

[32vquattro]

Now try those numbers again to include motor oil changes. the v8 uses twice 
as much as the honda. Still keep my v8 though. Al
----- Original Message ----- 
From: "Mike Arman" <Armanmik at earthlink.net>
To: <v8 at audifans.com>
Sent: Wednesday, January 16, 2008 6:10 PM
Subject: [V8] running the numbers


>
>
> Idly playing with my calculator this afternoon, came up with some
> interesting figures.
>
> 1990 V8Q, value of car about $5k (generous), gets about 20 MPG.
>
> Remaining service life is about 80,000 miles (assumes 120K on the car),
> fuel used in 80,000 miles is 4,000 gallons at $4 a gallon, or $16,000.
> Residual value of car set at zero - cost to drive 80,000 miles is thus
> $21,000, or 26.25 cents per mile.
>
> If I set the value of the V8 at $3,000, my cost to go 80,000 miles is
> $19,000, or 23.75 cents per mile. If the residual value of a 200K V8Q is
> $1,000, my cost is $18,000 - or 22.5 cents per mile.
>
>
>
> 2001 Honda Accord, value of car about $8K (guesstimate), gets something
> like 26 mpg (real world).
>
> After the same 80,000 miles, the residual value of the car will be in
> the $4,000 range, so the "cost of the car" is $4,000. 80,000 miles at 26
> mpg at $4 a gallon is $12,300 in fuel, so to drive 80,000 miles costs
> $16,300, or about 20.375 cents per mile.
>
> Basically, it costs me a not quite a nickel a mile more to drive my V8Q
> than it does to drive my Honda. Yes, I know maintenance is more
> expensive, but I do a lot of it myself. Insurance is actually less (!)
> so that offsets part of the maintenance cost.
>
>
> Now I'm going to pull some numbers out of the air - we find a car that
> delivers 40 mpg and costs $25,000. After 80,000 miles, the residual
> value is $15,000, so the "cost of the car" is $10,000 for the 80,000
> miles plus 2,000 gallons of fuel at $4, for $8,000 in fuel, total
> $18,000 making the net cost 22.5 cents per mile.
>
> Suddenly the V8Q doesn't look quite so bad . . . even if it does hurt at
> the pump. We need to look at TCO, total cost of ownership, just like the
> computer guys.
>
> Sounds like the best strategy is to find an older, low value car that
> gets 30 mpg or better, and drive it forever.
>
> (Unfortunately, in most parts of the US, mass transit is rarely a viable
> option. Where it IS available, you'd be way ahead taking the train.)
>
> Where it hurts is if you drive 400 or 500 miles a week - which is not
> unusual. Your cost per mile doesn't go up, but you are putting on a lot
> of miles in a short time, so you are spending a large amount between
> "revenue events" (weekly paychecks). It doesn't hurt so much if you
> drive only 10K or 15K miles a year, then the bleeding is slower.
>
>
> Anyone see any major holes in my methodology?
>
> Best Regards,
>
> Mike Arman
> 90 V8Q, which may not be such a bad deal after all, and is MUCH nicer to
> drive than the boring Honda Accord.
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