[HoosierRon]

AAA: Driving costs increased 1.9 cents per mile in the last year

Every year, AAA runs a study which they refer to as "Your Driving Costs" which calculates the average costs of owning and operating the five top-selling models in three popular size classes: small, medium and large sedans. This year, the study indicates that the average cost of driving a passenger vehicle in the United States has increased 1.9 cents per mile in the last year; up to 54.1 cents per mile. High gas prices and additional taxes, among other things, have overcome the downward trend set by maintenance, full-coverage insurance and depreciation.

So if you drive 15,000 miles per year, you will be paying $676 per month ($22.23 per day) to drive your car.

To put that in perspective, a 30 year loan at 6% for $112,000 would cost you the same amount. With 10% down, you could own this home in Indiana. And in 30 years, you will own the home free and clear. After driving for 30 years, you will have a bunch of worn out cars.

 

[hrcslam]

Funny how when looked at a certain perspective things will really open you mind up to a situation. But, of course insurance goes down and car payments go away (if people keep their car longer than 5-6 years) so comparing it to a house is not fair. Plus houses go UP in value not down. So that house in Indiana for 123K would end up being closer to 500K in 30 years (assuming an average increase of 5% per year in home value; this would be a low estimate).

 

[63GrandSport001]

Funny how when looked at a certain perspective things will really open you mind up to a situation. But, of course insurance goes down and car payments go away (if people keep their car longer than 5-6 years) so comparing it to a house is not fair. Plus houses go UP in value not down. So that house in Indiana for 123K would end up being closer to 500K in 30 years (assuming an average increase of 5% per year in home value; this would be a low estimate).

what about those who drive more then 30,000 miles a year like me :faint:

for me thats $16,230 a year ouch.

 

[hrcslam]

what about those who drive more then 30,000 miles a year like me :faint:

for me thats $16,230 a year ouch.

Yeah, Ouch. But, your price per mile will actually come down. So, $16,230 a year isn't accurate. Lets use my wifes Ion for example.

Car Payment is about $400/mo.
Insurance is about $90/mo.
We drive her car about 541 miles/mo.
Gas is about $3.15/gallon
And she averages about 27mpg for the daily grind.

So it costs us about $1.02/mile or $553/mo to drive her car because it is driven so little. ($6636/yr.)
But, if we were to drive it at 15,000 miles per year it would cost us about $635/mo or 50.8 cents/mile. ($7620/yr.)
At your rate of 30,000 miles per year it would cost us about $781/mo. or 31.2 cents/mile. ($9372/yr)

So applying AAA numbers to the equation we know that at 30,000 miles per year there is a 22% increase in yearly costs (9372/7620=1.22). So multiplying the original amount of 54.1 cents/mile by 15,000 then multiplying that by 1.22 will give the approximate amount it would cost to drive 30,000 miles per year according to AAA.

So, according to AAA results, to drive 30,000 miles per year it would cost you not $16,230/yr., but $9,903/yr.; this is not much more (in perspective of the $16,230 amount) than the 15,000 mile per year at $8115/year or $676/mo.

 

[Butz]

Part of it is due to the mighty dollar not worth much anymore!