Sunday, October 23, 2011

Why My Car Keeps Me Broke

I decided numbers speak greater than words in some situations. After yesterdays post with IRS standard car deduction of 55.5 cents per mile, it got me thinking. How much was I really paying to drive my car.

In money:

17/mpg Oldsmobile Intrigue
23 miles round trip x 5 days a week = 115 miles week
115/17mpg = 6.77 gallons of gas.
6.77 * $3.50 = $23.68 min a week in gas

Oil every 2,000 miles(car runs a bit rough/low oil light comes on) plus extra jug= $25
$0.0125 per mile
$23.68 (gas) + $1.44(oil cost/wk)
New total: $25.12 a week

Car insurance once every four weeks ~$82.00
$82/4 weeks = $20.50 a week in insurance.
$25.12(gas/oil) + $20.50(insurance cost/wk)
New total: $45.62 a week

Car tires ~$400 every 30,000 miles
$400/30,000 mi = $.014 a mile * 115 mi = $1.61
$45.62(gas/oil/insurance) + $1.61(tires/wk)
New total: $47.23 a week

Car registration $50 every year.
$50/52 weeks = $.97
$47.23(gas/oil/insurance/tires) + $.97(registration/wk)
New total: $48.20 a week

Repairs of within last 2 years radiator($99) + starter($110) + Battery ($97) = $306
$306/2 yrs = $153/52 wks = $2.95/wk
$48.20(gas/oil/insurance/tires/registration) + $2.95(expected repair cost/wk)
New total: $51.15 a week

TOGETHER IN A MONTH: Cost of $204.60 if all prices remain constant. That is more than half of one of my pay checks spent to get a paycheck.
I always like to consider opportunity cost in addition. Being that I am a college student I probably wouldn't lock this away in something not too liquid but even
at 1% savings account I am missing out on $24.55 in interest after a years of saving gains interest.

+

In time:

After all paycheck deductions I make $9.351/hr.
$51.15/$9.351 =
Each week in time/expense it costs me 5.47 or roughly 5 and half hours of work to pay for driving JUST TO WORK ONE WEEK.
IN A MONTH: I work roughly 22 hours just to have a means of transportation to my job.

Each trip to work is 40ish mins round trip * 5 days = 200 mins
That is 3.33 hours of unpaid time sitting in a car with no ac.
At my after deduction rate it comes out to around $31.14 of unpaid time directly spent on work.
IN A MONTH: I would have wasted away 13.32, or 13 hours and 20 minutes.

TOGETHER: 33.32 hours gone to the mindless act of driving to work.

1 comment:

  1. Stumbled on this via f/frugal. Seems like you should be able to cut down a good percentage of your insurance, it's quite pricey for what must be a 10+ year old car. Try some quotes on different websites (Geico, Progressive, etc.) and see you what you find.

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