Quote:
Originally Posted by dbc1218
So here is my question, should I drive the car and get half the mileage of the scooter but at half the price, or should I ride the scooter and get double the mileage at double the cost?
I bought the scooter to save on gas but with these numbers it doesn't seem justified.
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You have to separate your fixed, variable, and sunk costs. Insurance for example is a fixed cost, it's the same no matter how many miles the vehicle drives. Gas is obviously variable, and maintenance could be considered fixed or variable. Vehicle purchase price is a sunk cost, it can't be recovered and so should not be included. I would suggest using variable cost only and see what the results are. Eyeballing the numbers, I'd suggest the scooter will win. Then include fixed costs. If the scooter ends up losing again, then run numbers to see how many more miles you have to ride the scooter to break even. Possibly use a spreadsheet program and goal seek function. Then determine if that mileage is feasible for you. If it isn't then, consider selling the scooter. Personally I'd keep it even when things are close just for the fun factor
