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Re: Petrol pricing - long

To: mgs@autox.team.net
Subject: Re: Petrol pricing - long
From: jello@ida.net
Date: Fri, 7 May 2004 11:05:19 US/Mountain
I'm one of the last ones to complain about gas prices - I keep track of 
what it costs to run a vehicle, and gas is one of the cheaper things per 
mile.  Depreciation is by far the largest impact (unless you restore a 
car, then parts and labor are).  Insurance and gas cost about the same per 
mile.

I was figuring the other day - I could sell my MGA for about $8000, and 
buy a Honda insight for about $20000.  That means I'm spending $12000 on a 
car.  The insight gets 70mpg, and I drive 14000 miles per year.  So, that 
would take about 200 gallons per year - at $2/gallon, that's $400 in gas.  
My MG gets 26mpg - that comes out to about 540 gallons per year.  At 
$2/gallon, that's $1080.  So for my $12000, outlay, I could save $680 a 
year.  That means it would only take me 18 years to break even!!  At that 
time, the Insight will be relatively worthless.  The MGA will still be 
worth $8000  

Let's assume gas prices go up and average $3/gallon over the break even 
life of the Insight - then the insight takes $600, and the MG takes $1620 -
 that only takes 12 years to pay off.  Hmmmmmmmmm  How about $4 - Insight 
at $800/year, MG at $2160/year - 8 years to pay off.  Eight years from 
now, a 2004 insight and an MG may be worth the same amount, but I'm 
guessing that over the next 8 years, $3/gallon is a better estimate for 
the average gas price.  

My MG takes premium in this environment (4800 ft), and here that means 91 
octane.  Its currently at $2.169/gallon.  I'm not happy about it, but I'm 
not buying an insight anytime soon either.

Don't think I'm slamming insights.  My father owns one.  I've driven it, 
and it is a fun car to drive.  He has both versions of the Prius too, and 
they are nice cars.  This is what he's into, and likes - older sportscars 
are what I'm into and like.  I just think the mentality of spending a 
bunch of money to save on gas is silly.  If you're buying a new car 
anyhow, and it fits in your style, a hybrid makes sense.  If you're doing 
it to save gas money it doesn't.

Phil Bates

'58 MGA -----------------------|
'67 MGB                        |--- All of these average 26MPG
'69 Porsche 911T targa --------|

> Eric, I don't think it's so much the cost (althugh it DOES suck...) but 
the increase in so
short a period of time. My Audi takes premium unleaded, and between 4/30 
and 5/6 (last 2
fill-ups) premium increased 10 cents per gallon at my no-name station (to 
$1.83.9)... Most
of the locals are above $1.95 for premium unleaded (which BTW is typically 
92 or 93
octane, not 98...). I know we have the cheapest gas around, country-wise, 
but still....
> 
> Fortunately I work at home so I only need to fill up once every week or 
10 days.... 
>  
> 
> 
> Dan 
> The Garden State
> '76 MGB Tourer - Driver - It's getting better all the time....
> '65 MGB Tourer Project - Yep, still is....
> '04 Audi A4 1.8T q MT-6 - quattro, baby! 
> NAMGBR #5-2328 
>
http://mywebpages.comcast.net/dibiase/Working_MG_Gallery.html





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