Figuring out costs and value of new car

V

Victor

Senior Member
Location
midwest USA
I am figuring out the actual cost and value of buying a slightly used car.
I am in my 70's and drive very little. I decided to figure mathematically
what it will cost me over time, per day, and year. I never did this before.
Example. Suppose I (or you) drive only 4000 miles a year (40,000 ten years)
(no repair expenses) and the new car costs $18,000 including taxes- and after the tradein value of the old car is
deducted (5000?). Then how much would it cost for each mile driven in a year?
Well, I figure about .60+ cents. Then add the cost of new insurance. Say, $2200. a year.
Any math buffs there? It's just arithmetic. Would you buy a car if it will cost you $1.00 a mile
and $6.00 insurance every day, whether you drive or not.
Confused in quandry... then again, is this a good way to decide?
 

No I wouldn't at those prices...£6 a day is £2,190.... for insurance ? that's extortianate ...then £1 a mile... MY god you could only afford to go down the street and back...
 
I don't have any wisdom about the cost comparisons, but my car is 11 years old and I'm 68 years old. I don't drive much (take the bus and metro train most places; only have a couple places per week that I need a car to get to - tho one of those I could switch to grocery delivery and the other I could catch a ride with other hikers) and I am hoping I can just do repairs to my current car until I get to an age where I don't want to drive.

Do you have a current car that could be kept in good enough (safe; not too costly to repair) shape to last long enough?

Sometimes I wonder if already it isn't a good economic choice for my amount of usage to be paying car insurance, license plate renewal, & maintenance, but it is a convenience that I don't want to lose yet.

I guess in your calculations you should include what it would cost to use delivery services and Ubers in place of having a car. Unless you absolutely want to have a car, in which case I think the real consideration would be your budget and whether you would have to do without some other nice thing. If you feel that you will get rid of the car at some age, you might want to include the eventual sale price that you will get for it (deduct from the cost).
 

Victor said:
I am figuring out the actual cost and value of buying a slightly used car.
I am in my 70's and drive very little. I decided to figure mathematically
what it will cost me over time, per day, and year. I never did this before.
Example. Suppose I (or you) drive only 4000 miles a year (40,000 ten years)
(no repair expenses) and the new car costs $18,000 including taxes- and after the tradein value of the old car is
deducted (5000?). Then how much would it cost for each mile driven in a year?
Well, I figure about .60+ cents. Then add the cost of new insurance. Say, $2200. a year.
Any math buffs there? It's just arithmetic. Would you buy a car if it will cost you $1.00 a mile
and $6.00 insurance every day, whether you drive or not.
Confused in quandry... then again, is this a good way to decide?
Click to expand...
You may want to get a quote on insurance for your calculations.
 
I was paying 112/month for my 17 year old car. Now I’m paying 97/month for my new car both having full coverage. I did switch from geigo to progressive. But progressive wasn’t any cheaper for my old car. The agent couldn’t explain why it was cheaper.

How old is the car you are driving? Does it have any of the newer safety features? My new car has many features and more airbags that my 17 year old car didn’t have.
 
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Don’t forget to look at the lost Investment income or interest on the $18,000.00 that you spend to purchase the vehicle.

I drive less than 1,000 miles per year and owning a car compared to using mass transit, car services, etc… makes absolutely no sense but some things aren’t about money, if you enjoy the freedom and convenience of having a car go for
It!

YOLO!!!
 
Aunt Bea said:
Don’t forget to look at the lost Investment income or interest on the $18,000.00 that you spend to purchase the vehicle.

I drive less than 1,000 miles per year and owning a car compared to using mass transit, car services, etc… makes absolutely no sense but some things aren’t about money, if you enjoy the freedom and convenience of having a car go for
It!

YOLO!!!
Click to expand...
It sounds like you live in an area with good public transportation. It’s awful here and I couldn’t take my dogs to the vet without a car. Plus I enjoy the freedom to meet friends on the spur of the moment, etc.
 
I have always calculated car prices this way….and yes it is enlightening. I drive a lot…so owning a car (or three) makes much more financial sense. But it is sort of like living in an upscale neighborhood…what are you willing to pay? Uber can be a very cost effective alternative.
 
Teacher Terry said:
It sounds like you live in an area with good public transportation. It’s awful here and I couldn’t take my dogs to the vet without a car. Plus I enjoy the freedom to meet friends on the spur of the moment, etc.
Click to expand...
I’m not judging or criticizing, as I said “if you enjoy the freedom and convenience of owning a car go for it.”
 
Aunt Bea said:
I’m not judging or criticizing, as I said “if you enjoy the freedom and convenience of owning a car go for it.”
Click to expand...
I didn’t think you were 😊. I actually figured out the cost of taking uber versus owning a car a few years ago. It would cost me more money plus I would lose the spontaneity. Then I remembered that they won’t take pets. Our bus system is terrible. I know many people live by great public transportation and can take their pets on it.
 
We have pretty high rates here because our urbans areas have incredibly high numbers of scofflaws who drive with no insurance, since the penalties are cheaper than the insurance they can get with their bad driving records. Only statewide figures are published for political correctness, but those sit at 25% uninsured so you can imagine how bad Detroit itself is. And that's before considering their high rates of theft and vandalism.

We also got pushed into "no fault" insurance decades ago because of this. You can't get blood from a turnip, and if the perps don't carry insurance you need your own when they leave you with two broken legs.

However... the rates mentioned above look like twice mine. I can't imagine owning 3 cars!

And why are your operating costs so high? I spend $0.10 to $0.15 a mile at the most on gasoline. Annual service costs are running me about $90 to $110 on average. My car is coming up on 7 years old soon, so tires or something mechanical is coming for sure, but not yet. I really should get a new battery, though this one tested good the last time I took it in.

What does $19K get you on the used car market any more? Mine was recently appraised at $19,500 but that was dealer trade-in, not sale price.
 
For me it is pride. My old car is 2013. Still runs well no problem but that's not the point
The new car has all the safety features and I can see over the hood easier that helps
Parking it. Handling is easier. I rarely take public transport. Uber never would
I like the new color too. Ironically. I really hate drivingin traffic
 
I don't get that intense about calculating costs, anymore. If I like the car, I buy it. Well, that was true for my last car. I used to buy the one with the best gas mileage within reason, but not some three wheeled ecno abomination. But my hat's off to you, Sir. I respect your methodology. I wonder if you can google this information on the internet?
 
Victor said:
For me it is pride. My old car is 2013. Still runs well no problem but that's not the point
The new car has all the safety features and I can see over the hood easier that helps
Parking it. Handling is easier. I rarely take public transport. Uber never would
I like the new color too. Ironically. I really hate drivingin traffic
Click to expand...
I didn’t calculate the cost per mile because I don’t care. This is my last car and I want the safety features. Plus I have back problems and my Corolla was very low so difficult to get out of at times. My new car is much higher.

I’m really enjoying driving my new car. I drive my cars for a very long time. This last car was 17 years old. I am done going overseas to travel so decided to make my everyday life better. At some point I will go to Vietnam to visit my youngest son.
 
If you can afford a new car and want one yes you should buy it. All the new safety features are great and it will handle much better than your old car. There’s really no comparison between my old car and new car.
 
Victor said:
I am figuring out the actual cost and value of buying a slightly used car. I am in my 70's and drive very little. I decided to figure mathematically what it will cost me over time, per day, and year. I never did this before. Example. Suppose I (or you) drive only 4000 miles a year (40,000 ten years) (no repair expenses) and the new car costs $18,000 including taxes- and after the tradein value of the old car is deducted (5000?). Then how much would it cost for each mile driven in a year? Well, I figure about .60+ cents.
Click to expand...
If the total you are paying out for the car is $18,000 and the total mileage over 10 years is 40,000 miles.
$18,000 ÷ 40,000 miles = $0.45 per mile.

Victor said:
Then add the cost of new insurance. Say, $2200. a year.
Click to expand...
Regarding the extortionate cost of $2,200 (I pay a yearly total of £750 [$915] for two cars. Average of $457 per car -- Fully Comprehensive Insurance).
$22,000 over 10 years ÷ 40,000 miles = $0.55 per mile.

$0.45 + $0.55 = $1.00 per mile.



If you were to factor in fuel, for argument sake lets say $3.20 per US gallon, on a car that averages 30 mpg.
40,000 miles ÷ 30mpg = 1,333.3 US galons.
1333.3 × $3.20 = $4266.7
4,266.7÷40,000 = $0.11 per mile (rounded up).

What you can't factor in is the cost of the convenience of owning and using your own car. The ability to get into your car at a moment's notice. Without the need to make arrangements for transport and waiting for it to arrive. That value of convenience to you might significantly. outweigh the cost of $1.11 per mile. What would Uber charge you?

So what car will you soon be buying?
 
No where in any response was the statement I "need" to replace my present car. Wanting a newer car with safety features & easier to see to park are good reasons even though minimal use was indicated. Most important was the color. All in all it's what has value to you Victor no matter the dollar cost per mile. .
 

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