Cost to Drive a Mustang

That was incredibly boring to read =(. Interesting figures nonetheless... although I am not quite sure why you posted it. ;D

-Mike

Amount

After I posted this, it occurred to me that I could back out the extra miles and come up with some numbers for an average driver. I recomputed my report, assuming that I drove only 30,000 miles during the same period. All other things being equal, fixed costs, such as payments, insurance and taxes, would be the same, but incremental costs, like fuel, maintenance and deprecation would be lower. After recalculation, the per-mile cost was significantly higher, but the per time period cost was lower:

Cash Payment Basis Depreciation Basis

Costs Amount Costs Amount

----------------------------------- ----------------------------------- Payments $9,530.05 Depreciation $10,825.38 Fuel 1,765.56 Fuel 1,765.56 Insurance 2,275.68 Insurance 2,275.68 Service 481.60 Service 481.60 Tax & License 556.72 Tax & License 556.72 Other Costs 306.55 Other Costs 306.55

----------------------------------- ----------------------------------- Total Cash Costs $14,916.16 Total Accrued Costs $14,695.49 =================================== ===================================

Cost per mile and time period Cost per mile and time period

----------------------------------- ----------------------------------- Total Miles Driven 30,000 Miles Driven 30,000 Cash Cost per mile $0.4972 Accrued Cost per mile $0.4898 Daily Cost $20.43 Daily Cost $20.13 Weekly Cost $143.03 Weekly Cost $140.92 Monthly Cost $621.51 Monthly Cost $612.31 Annual Cost $7,458.08 Annual Cost $7,347.75 =================================== ===================================

- Max - ======= The best part about hating people is that I never run out of great ideas -- Dogbert

Because I literally have nothing else on topic to contribute to this newsgroup.

- Max - ======= The best part about hating people is that I never run out of great ideas -- Dogbert

nonetheless...

Max... I think you need a hobby... woodworking is relaxing and, for someone as meticulous as you, rewarding with traditional joinery.

Seriously, I don't don't keep much trck of my operating costs (wouldn't help since I'm the type that can't drive a car with as much as a squeak and I don't pay shop time). I think that, in many cases, the face of the auto industry would be quite different if everyone considered operating costs high on their prepurchase priority list.

People that buy a car using the "little head" rather than the big one are usually more exciting, anyway...

-- Jim Warman snipped-for-privacy@telusplanet.net

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LOL...

significantly

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Max, Max, Max.... I have a suggestion.

Grab a pack of smokes, a six pack of your favorite caffinated (non-alcoholic) beverage, some sunglasses and perhaps a disposable camera. Get in your car, and go drive in any direction for a few days, take some pictures and come back home via the scenic route. You'll feel like a new man.

I normally wouldn't recommend such items as a pack of smokes, but you might do well by stepping just a bit closer to the edge and living dangerously. Please leave your phone, pager, and calculator at home, and compute the fun factor when you get back.

Amount

It can be useful information. Some people get in too deep when buying a car. You got in too deep since you are upside down. 48 month loan should be the max. and 36 or less even better. If the payments are to much at these shorter loans, you can't afford the car. If you or someone else totaled the car, your or the responsible party's insurance is only liable to pay you the current value of the car. With the longer loans, the value of the car can be thousands lower the principle and interest still owed on it.

I think you understand this since you pointed out the fact that you are upside down. Maybe it this could help others be smarter with their money.

John

Amount

Max, there is more to life than accounting. The fact that you took a long term loan is your mistake. I bought mine with a 4 year 5.25% interest loan. Saved some bucks there.

You could have bought a used Yugo.

Heck, you could have bought a used Mustang too, but who knows how well it was maintained. My advice is take great care of your car and do the work yourself to save some bucks.

Burn some rubber, dude, there is nothing like the smell of a burning tire, clutch or brake to remind you of what life is all about.

While you are at it, would you mind doing a similar accounting for my wife? I get her 11 years ago, and I'll send you the receipts.

Thanks,

John

In case you didn't know, buying ANY new car is a very expensive money-losing proposition. Running the numbers does not change that fact one iota. All it does is make you FEEL worse about it.

Better to forget the hard and cruel financial facts and just enjoy it! If you can't do that, sell the Stang and buy a $500 beater.. it's MUCH cheaper to drive.

LJH

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very true. I bought mine used, in great condition, and with an ext. warranty that only cost me 25 bucks to transfer over.

i've driven very cheap if I look back at it now. It's unwise to buy a new car and sell it after 2 years. (but good for me !) I th>In case you didn't know, buying ANY new car is a very expensive money-losing

Remove NO-SPAM from email address when replying

I'll take a 5- year "same as cash" loan over a 4-year 5.25% loan any day of the week.

I don't see how you "saved some bucks" there. Creative accounting?

-- John C. '00 GT Convt. '03 Cobra Convt.

Because he hasn't "saved some bucks."

For every $1,000 borrowed at 5.25% over a four-year loan, the borrower will pay $139.40 in interest. On a $20,000 loan, that's $2,783.20 in finance charges.

For every $1,000 borrowed at 0.00% over a five-year loan, the borrower will pay (you guessed it) $0.00. On a $20,000 loan, that's (you guessed it) $0.00 in finance charges.

Paying extra for the privilege of pay sooner doesn't qualify as "saved some bucks."

I can deal with the innumerate implying I'm a lifeless compu-geek for gathering the data and analyzing it for useful information. I don't think I can, however, deal with someone on Usenet presuming to know enough about my financial situation to lecture me on what is right for me. I suppose I could point out that the reason I'm "upside down" on the car is because it's used primarily for business, and I've put on more miles than average. All other things being equal, higher mileage means higher depreciation. I have, however, been reimbursed for those business miles. If you look at the last section of my report, you will see that my actual out-of-pocket expenditures are significantly lower than actual cash spent. A little analysis will show that I am ahead of "the game"; that is, my position is better because of my high miles/upside down/reimbursement situation than without it. I suppose I could point out that it's a sixty-month, same-as-cash (interest-free) note, and that a shorter term or paying it off early doesn't make any fiscal sense. I didn't make a down payment because that didn't make any fiscal sense, either. Only if I were truly financing or offered a discount for early payment would it make any sense to lessen my term.

I suppose I could point out that regardless of whether a loan is upside down or right side up, the amount of principal paid over its life is *the same*. Regardless of your down payment or how you accelerate payments or if you sell the car early, that number never changes. The only possible variable is the amount of interest you pay, and since my note is same-as-cash, then that's a constant, too. I suppose I could point out that by the objective standards put forth by Thomas Stanely and William Danko, authors of *The Millionaire Next Door: The Surprising Secrets of America's Wealthy*, that I am wealthy. I have the cash reserves to pay the balance of the car's note immediately if I needed to, say, in case of a "total" wreck.

I suppose I could point out that at the time I purchased the car, the dealer offered me a discount if I paid cash for the car. I used that information to impute an "interest rate" for the same-as-cash financing. My conclusion was that my money earned a better rate where it was than by paying the discount price. I suppose I could point out that I am primarily, first and foremost, an accountant. The fact that I bothered to post my report should show that I (over!) analyze transactions to determine what is best for me. I suppose I could do all those things, but I think I'll pass. Y'all don't really seem to be interested.

I don't think the intention of the group was to piss me off, so I'm not taking this personally. But, god-damnit, it did piss me off. I didn't post that report to complain about the high cost. I didn't post it to complain that I was in financial straits. I didn't post it to complain that I had made a mistake in purchasing my car. And I certainly didn't post it to be lectured by people who *think* they have a better understanding of my finances than I do. I posted it because I thought someone, besides myself, might be interested in a real-world example of what the true costs of ownership are. If you think there is something else there, then you need to check your premise, because it is false.

- Max - ======= Those who understand compound interest are destined to earn it. Those who don't are doomed to pay it.

Well done. There are some out here that do appreciate the effort. I would never document and analyze the data to that extent, but I'm glad someone did. Hell, I think I'm doin' well if I check the mpg occasionally. Most informative.

Thanks,

John C. '00 GT Convt '03 Cobra Convt.

"Max C. Webster III" wrote

Hey, it helped me. Some people assume too much on when discussing OTHER peoples situations. In fact I could probably use your help with something. I'm receiving a settlement for a car accident soon and am looking to buy a car with it. Sounds like you figured out the best way to buy a car. I know I'll be able to pay for the car in cash, but it does make sense to try to qualify for a same as cash deal and invest the payments somehow to earn against what I WOULD'VE thrown away by paying off the entire car. I never thought of it that way before. Thanks for the idea.

Now I know I won't be able to qualify for a same as cash deal without a significant down payment. My credit isn't pretty due to past stupidity. But I guess what I would need to do is find a CD or something like that which will pay a higher % than what I would be spending to pay off the car by the last day of the same as cash period. Is that right? Am I getting the gist?

Scott Williams

'66 HCS

How does the cost to drive compare to other cars? I mean, almost any new car is gonna cost $20k+, and Insurance is also higher for new cars. My friend thinks his Honda is so much cheeper, but I'll bet it doesn't cost all that much more to drive a 'Stang!

-JF 02 TruBlu GT, 5spd.

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My numbers are my personal experience, so I cannot report on other vehicles.

However . . .

- Max - ======= The best part about hating people is that I never run out of great ideas -- Dogbert

Hey Scott, IMHO paying cash is a better way to go. Why? Because you save all of the interest on the loan that you could otherwise use for MODS!

Kate

For $.09 a mile, I'll take the Mustang over a Honda any ol day :)

Kate