Gordaen’s Blog

The media seems to focus on gas prices, rarely noticing the other costs that are associated with driving. There’s no “one size fits all” way of figuring out what your vehicle really costs you, but I thought I would throw some general prices out there to open some eyes.

These calculations are going to be based on a vehicle undergoing regular maintenance for 120K miles (including the maintenance that would be “due” at 120K) over eight years. This will not include any mechanical problems (i.e., something breaks and has to be fixed).

Fuel
Even this calculation is a bit tough. Prices here are far higher than in other states, so I am using the current US Average of $2.22 per gallon. The EPA estimates the average fuel economy for light duty vehicles is 21 mpg this year. Using this data, the total fuel cost for 120K miles is $12,685.71.

Maintenance
Regular maintenance for a vehicle includes oil, filters, spark plugs, fluids, etc. Based on normal manufacturer recommendations, I took the number of times each type of maintenance would be required during the 120K miles and multiplied that by an average cost for that maintenance. For instance, oil changes (including filter) can vary from $20-75, so I took $35 as the average and assumed a 3K mile interval. That means oil changes alone cost $1400.

Some maintenance is specific (like the 60K interval), but other types are not (such as wear components like brakes). For components that are replaced based on wear, I tried to make reasonable assumptions (for instance, with the brakes I assumed front and rear pads were replaced at 60K and the rotors didn’t need replacement or machining). When in doubt, I went with the smaller dollar figures. The total (including the oil changes) came to $4500.

Initial Cost
Just like the other costs, there’s no easy answer to this one. I’ll show the calculations without the cost of the car itself and with the purchase of a $25,000 car. Since you still own the car at 120K, I figure it makes sense to subtract what it could be worth at that time ($5,500) from the initial cost. That results in a loss of $19,500 from the vehicle itself.

Other Costs
The only other cost I added was insurance, assuming a $100 monthly policy ($9600 total). Of course, that varies wildly depending on your record, type of car, etc. Other costs that I didn’t add but might be worth considering are tolls, parking fees, car washes, tickets, accidents (deductibles), towing, and modifications (performance, speakers, etc.).

Results
$12,685.71 + $4500 + $19,500 + $9600 = $46,285.71 or $0.39 per mile.
Without the car cost, that comes to $26,785.71 or $0.22 per mile.

If you drive 60 miles per hour, that’s a cost of $23.4 (or $13.2) for one hour of driving.
If you really want to scare yourself, figure this from age 18 to age 66 and you have six times the previous results ($277,714.26 and $160,714.26 respectively for a lifetime of driving expenses). This really illustrates the need for quality public transportation and the need to move away from oil/gas (not just from fuel expenses, but because of the underlying costs for infrastructure).

For a nation of 300 million, the first figure gives a cost of 83,314,278,000,000 for the lifetime expense of driving. That’s right, driving will cost the United States 83 trillion dollars. I really wonder how people can argue that the government shouldn’t be concerned with providing public transportation or regulating vehicles (such as fuel economy requirements)…

Saving Money
The best way to save money is to avoid driving when possible and perform your own maintenance. It’s actually a lot easier than it looks. Some modifications will actually improve your fuel economy (such as larger, lightweight wheels that allow tires with a thinner sidewall, reducing drag), but the best improvement is a good driving habit. Don’t gun it from light to light. Don’t wait until the last second to stop. Shift when appropriate. If you can avoid a short trip, do so. Short trips cause more wear per mile than longer trips because of the time it takes for the engine to warm up. If you can avoid buying a new car, do so. It will save you a lot in terms of interest and depreciation.