Posted on 08/18/2011 10:07:32 PM PDT by Lazlo in PA
OTOH, $11,000 buys a LOT of inhalers!
In my case, at present cost, that would buy 61 years worth of them; and any alleged ‘air quality improvements’ would not reduce my need. /sarc
However, $11,000 would buy 3,150 gallons of gas at today's price in town.
At 20 mpg, that is over 60,000 miles...about 5 years worth of driving on average.
At 50 mpg, that same 60,000 miles (first 5 years of ownership) would cost $4,200 PLUS the $11,000 off the top on price.
Few people will drive their vehicle enough to make up that $11,000 difference.
At seven (end of 84 month loan & extended warranty period) years, the 20 MPG car is still ahead by $2,180.
HOORAY! FINALLY $340 ahead for the 50MPG machine at the end of 9 years!
Of course, the implicit assumption is that the high-milage version will NOT have additional maintenance costs involved, or the above is even worse.
Whomever this is designed to help, it isn't the consumer!
I forgot to add, it also doesn’t take into consideration the additional auto loan interest on the extra $11,000.
Probably have to keep the car somethiing like 12 years to break even.
Who is getting the money?
With the trucks averaged in at 44 MPG that means my daily rice-burner will have to get 64 MPG.
That will be a two cylinder car that makes a Smart look roomy.
Thank You Chairman MaoBoma.
“I forgot to add, it also doesn’t take into consideration the additional auto loan interest on the extra $11,000.”
Not to mention the additional sales tax and the additional excise taxes...both of which are based on PRICE.
It’ll sure make demand for oil go down!
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