Calculating cost savings of owning fuel efficient second car for commute?

[JSH]

Back to the original question:

Yes, I've compared buying an additional car to avoid driving my 15 mpg van.

The only time the numbers worked out was when I leased a Spark EV for $100 a month, paid $600 a year for insurance on it, and could charge for free at work. The total cost of ownership on the Spark was less than gas for the van.

The numbers don't work on a gas vehicle - even something like a cheap 2nd gen Prius that gets 45 mpg. (And that isn't even factoring in money lost by buying a second car instead of keeping that money invested earning 10% or more a year). It might work for you with double the daily mileage.

We were in a similar situation as you 20 years ago when my wife went back to school and was driving 100 miles a day to the university. We sold the 15 mpg truck and bought a 45 mpg Jetta Wagon TDI.

[redpoint5]

I'd get a used Chevy Bolt, especially since they will be getting a new battery due to the recall. 100 miles all electric would be super cheap, and no maintenance other than washer fluid, tires, etc.

Of course, I'd wait until used car prices aren't 30% higher than normal too.

[MetroMPG]

Originally Posted by Hersbird

Insurance is definitely the killer of cost savings on an extra car.

I understand this depends a lot on where you live, but it's definitely true for me. Ontario is one of Canada's more expensive provinces for car insurance.

Even though I own multiple roadworthy vehicles, I almost never have more than one insured to drive at a time. And that's with basic coverage.

[Isaac Zachary]

Here I'm spending the same amount of money on the insurance as the payment. And the payment is for a $10,000 loan over 5 years. And that's with just one single-point ticket from some 10 years ago.

Health insurance is also very expensive here. A bottom of the barrel, super-high deductible (nearly $20,000) can cost some $400 to $500 per person for young healthy people with no previous health conditions.

[ME_Andy]

Of course, I'd wait until used car prices aren't 30% higher than normal too.

It's starting to look like high prices are the new norm. Can't get a good six-pack of beer for less than $9

[Isaac Zachary]

Originally Posted by ME_Andy

It's starting to look like high prices are the new norm. Can't get a good six-pack of beer for less than $9

I wonder how real estate and rental prices have affected this.

It seems that these have been outpacing wages for decades. Many people were getting to the point of paying more than half their wages on a roof over their heads before the pandemic.

Ideally you'd pay about 25 to 30% and 35% of your income at the most.

With so many places skyrocketing to $2,000, $3,000 or $4,000 and beyond, per month, now you got to make some $6,000 a month at least.

I guess this is why so many people are refusing to work at the lower paying jobs around here. Before COVID lots of places were at $11 to $13 per hour. Now they can't get anyone to work for $20. $20 per hour at McDonalds! $25 per hour at Wal-Mart! And they can't get anyone to work at those places for those wages! I hope people are finding the jobs they are looking for, because this is insane!

The point is, if you make $6,000 to $12,000 a month, then $9 for a six-pack ain't nothing. With inflation, you got to make more to keep up. And that just makes the new prices the norm.

[freebeard]

Inflation has been inexorable since 1913. No brakes on that train.

[JSH]

Originally Posted by Isaac Zachary

I guess this is why so many people are refusing to work at the lower paying jobs around here. Before COVID lots of places were at $11 to $13 per hour. Now they can't get anyone to work for $20. $20 per hour at McDonalds! $25 per hour at Wal-Mart! And they can't get anyone to work at those places for those wages! I hope people are finding the jobs they are looking for, because this is insane!

Something people don't think about is child care. If schools aren't in session someone has to stay home with the kids. If one kid in a class test positive for COVID and the whole class gets quarantined at home for a week or two someone has to stay home from work.

It doesn't matter how much you offer someone per hour to work if they don't have someone to watch their kids while they are at work.

[Isaac Zachary]

Originally Posted by JSH

Something people don't think about is child care. If schools aren't in session someone has to stay home with the kids. If one kid in a class test positive for COVID and the whole class gets quarantined at home for a week or two someone has to stay home from work.

It doesn't matter how much you offer someone per hour to work if they don't have someone to watch their kids while they are at work.

That's very likely true. On the other hand, the jobless situation continues, or is worse now, even though the school here has NEVER closed due to COVID, not even a single class, and daycares have also been open for quite some time.

So those that send their kids to daycare, sure. They may have had to quite their job and have been reluctant to go back.

But in the end it's all related. Before the pandemic people were already living at their wits end. Both parents in an average family had to work so they could pay nearly half of those wages, or more than half, on housing. Then COVID hit. Some lost their job temporarily. Some had to stay home with their kids. Meanwhile, the housing market that was already too expensive just got even more expensive.

But once you've been affected there's not much incentive to keep going. It's kind of like falling down in a foot race. You were already running as fast as you could before you fell. Now you fell and everyone just passed you. You could get back up and try to run even faster, but that's starts seeming kind of pointless and you start to wonder if there isn't an easier race somewhere else.

[redpoint5]

Sounds like looserthink.

I should read that book so I can know if it sounds like that.