Math on having a second vehicle

tim and amy wrote:

lanerd wrote:
Well, let's see. 250 x 52 = 13,000 miles @ say 15mpg =666 gals of fuel at say $3.75/gal = $3250.

A small car would get about 30mpg so 13000 miles would be =430 gals at $3.75/gal would cost about $1625.

So subtracting the two $3250 - $1625 = $1625 that you would save each year in fuel savings.

At these figures it would take you about 3.7 years to pay for itself in fuel savings.

Plug in your own actual figures for mpg, $/gal to get a better/worse cost savings.

Hope this was what you were looking for.

Ron

This is spot on advice!! I did a spreadsheet as I just moved and now commute 120 miles round trip, granted I work a rotating schedule of 3 and 4 days. But still I average 21,800 miles per year. I never thought about it, but when I punched that in and found out I was spending close to $7,000 in fuel per year just to commute and go no where else, that made up my mind. I'm looking at cars getting 38 mpg or better right now in under 12K price range, That will pay for it self in right at 2 years just in fuel savings.

For me this is where the analysis gets murky. Yes the saved fuel will pay the payment. But what about maintenance and insurance?

But what about that 30-50K truck that is now parked and not being used except a few times a year. Is that money well spent?
In my scenario I try to use my RV as much as possible, it is the only way to get value out of it. Luckily my dually serves as my work truck and daily driver as well. I need to use my truck daily RV or not.
I wish I could use my RV daily to get more value out of it.
For me value equates to use. If I park my truck am I increasing its value or wasting money by letting it sit idle 90% of it life?

lanerd wrote:
Well, let's see. 250 x 52 = 13,000 miles @ say 15mpg =666 gals of fuel at say $3.75/gal = $3250.

A small car would get about 30mpg so 13000 miles would be =430 gals at $3.75/gal would cost about $1625.

So subtracting the two $3250 - $1625 = $1625 that you would save each year in fuel savings.

At these figures it would take you about 3.7 years to pay for itself in fuel savings.

Plug in your own actual figures for mpg, $/gal to get a better/worse cost savings.

Hope this was what you were looking for.

Ron

This is spot on advice!! I did a spreadsheet as I just moved and now commute 120 miles round trip, granted I work a rotating schedule of 3 and 4 days. But still I average 21,800 miles per year. I never thought about it, but when I punched that in and found out I was spending close to $7,000 in fuel per year just to commute and go no where else, that made up my mind. I'm looking at cars getting 38 mpg or better right now in under 12K price range, That will pay for it self in right at 2 years just in fuel savings.

BenK wrote:




Talked to my insurance broker and he says it's classified as a motor
cycle, so about $150/yr for my age bracket/driving record/etc (yeah
being a AAA member for 48 years helps a bit)

Rated for highway, but I'll not and only use it in the town and maybe
the local boulevard with a max 35 MPH

BenK - what is this called? I want one! (Don't need the one that comes with the girl ;) )

BenK wrote:
OBTW...if they threw in this optional equipment...I'd buy it in a second!!!!

Wow! I didn't like it at all a second ago.:B

OBTW...if they threw in this optional equipment...I'd buy it in a second!!!!

A lot depends on the age, type, miles, even badge of the vehicles in question

My 1980 Silverado has +500,000 miles (guessing, as when sis and brother had it,
they drove it for years with a busted speedo cable). This is my work horse for
properties and when have 'stuff' to haul. Insurance is less than $200/yr. Registration
is around $100/yr. I do my own maintenance and get the best can afford

My daily is a 2000 Honda Odyssey. Bought used for $5000.00 around 2008. 18MPG city
and 22-24MPG highway. Seats seven and has a 1.25" receiver for the bike rack.
$650/yr insurance. I do most all my own maintenance and buy the best can afford
(Mobil 1 synthetic, NAPA Gold oil filter). Around $120/yr DMV registration.

Suburban is 18 years old next month. Insurance is around $800/yr. Registration is
around $200/yr. I do most of the maintenance myself and get the best
stuff. Still runs good...no longer strong at +162K miles of very hard
driving. Still tows well, but do notice that 'snap' is not as sharp

1969 2 seater is in the garage. $150/yr insurance (storage). No DMV
till register. This will most likely have the highest insurance once
I get it restored. Hogged out 3.1L, E31 head with the works, 5 spd, etc
About 350 HP for a 2,400 lb 2 seater, which will NOT be my daily

Now that I'm in my mid 60's, noodling collecting SS and getting a
pure 'city' vehicle...like this:







Talked to my insurance broker and he says it's classified as a motor
cycle, so about $150/yr for my age bracket/driving record/etc (yeah
being a AAA member for 48 years helps a bit)

Rated for highway, but I'll not and only use it in the town and maybe
the local boulevard with a max 35 MPH

PS...dislike monthly payments of any kind...especially for vehicles
Might get another lux sedan...had a S65 on order, but cancelled in
rethinking this like the OP is noodling...want vs need vs why not...

It is very difficult to actually come out financially ahead with 3 vehicles instead of 2. I did decide to go the 3 vehicle route but I knew that when buying my Suburban so I intentionally bought an older one with more miles so I had less money into the tow vehicle. I won't put that many miles per year on it and I will be able to use it for 10+ years. If I were driving it every day I'd have to get rid of it within 7-8 years. I figure I'm just breaking even. It would be cheaper actually to fork over the money for a 2008 2500 Suburban with the 6.0L and 6 speed (versus the 2003 with the 8.1L) and use it for a daily driver and just have 2 cars since it gets much better fuel economy than the 8.1L. I prefer the older Suburbans however as I get the 8.1L, the 3rd row is more comfortable, I was able to upgrade the hitch, etc. I also like the convenience of a 3rd vehicle. I can have it all hooked up and ready to go when I get home from work for weekend trips and both of the other cars are available for going to work that day. It is also nice when I want to work on one of them or take it to the shop for repairs/maintenance, it is rarely a rush as I still have 2 available vehicles. It is more personal preference if you ask me. You have to be VERY careful if you expect to save money. It gets complicated to calculate costs as vehicles will need to be replaced at different intervals, variations in insurance, different fuel economy depending on how the vehicle is used, etc. Regardless, the vehicle I drive every day needs to be something I don't mind driving. I'll gladly drive an older car, but not a beater.

Your truck, your money, your decision.

I bought a Prius for my 100~mile a day work route and DW drives our F250 for her short 6 mile commute. The 53~mpg average Prius is paying for itself in fuel savings and then some compared to when I was using my HD pickups for work. But that's just our situation. Yours may be totally different. The only regret I have is that we didn't do this years ago.

unless you do a lot of "running around" and the secord car is really cheap to own (e.g. almost zero cost of money and minimal insurance) it will be hard to make it pay.

For $500 - $2000 disposable cars with good mpg, it. can pay off for long distance commuting, like 100-200 miles a day, but not many people do that, because of the time cost.

I use my towing/hauling truck (former 16-22 mpg replaced by a 14-18 mpg one ton) for my 100 miles a month of running around, and save the 35-41 mpg mini car for the long non-rv road trips where the better mpg pays off big.