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Old 05-22-2012, 01:49 AM   #46 (permalink)
meanjoe75fan
eco-scrapper
 
Join Date: Sep 2009
Location: New Kensington PA
Posts: 69

Big Blue - '94 Ford F-150 shortbed
90 day: 15.71 mpg (US)

Mexico Nuevo - '84 Honda V45 Sabre
90 day: 36.67 mpg (US)
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I read that article. I'm sorry, but the math in there was pretty far off, and the assumptions tenuous.

1. 51¢/mi is the IRS "standard depreciation" and reflects ALL costs (fixed and variable) divided by miles driven for the "typical motorist." What you need to look at is the *marginal cost* of driving that extra mile (gas, some of the maintenance, some of the depreciation.) That's a LOT less than 51¢!

2. Taking out a 30-ye mortgage implies that your "short commute" remains constant over three decades: no job changes or moves within the company. That's laughable! (This would be a better comparison for a rental, IMO.)

3. Economists generally value a persons time at 70% of their wage rate. So $25/HR for "lost commute time" implies a near $40/HR hourly rate! What are we, strippers and dealers?

4. The math also assumes no countering benefits in exurban living: only cheaper housing. Stuff like cleaner air, less noise, crime, better schools are totally ignored!

Like my IBM-employed ma used to say: GIGO...garbage in, garbage out.
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