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Huh? You paid X dollars a long time ago for the Honda. If instead you and your identical neighbors had been sharing a sequence of Hondas which were driven con
by jessriedel 9y ago
Huh? You paid X dollars a long time ago for the Honda. If instead you and your identical neighbors had been sharing a sequence of Hondas which were driven continuously and then replaced, your contribution to the purchase prices (i.e., the total price of all those cars divided by the number of neighbors) would have been less than X dollars (since your Honda is still running). Furthermore, it would have been spread out in payments over 14 years rather than being paid upfront in 2003. Therefore, you could have kept that money in the bank stock market earning interest.
That's the cost I'm talking about. The maintenance cost of raw sitting time (rust, freeze-thaw cycles, etc.) are additional.
- Spooky23 9y agoI’m almost 40, live in upstate New York (ie. Cold, snowy). Maintenance for a regularly driven car is all about mileage. Suspension and electronic motors start falling off at $150k miles. Per mechanic friends, most better cars go until about 250k miles with modest maintenance issues, and after that things like transmissions fail and are not a good value. The problem with the pooling is that any outlier blows the financial model. Whatever interest I would make would be wiped out by a single event where I’d need to rent a car. There’s a place for things like Uber (or traditional taxis) and zip car. But unless you barely use a vehicle or cannot afford one, it’s a pain in the ass to share.
- jessriedel 9y agoI'm not making any claims about the overall value of ride-sharing an autonomous vehicles. I'm only rebutting the idea that the cost of capitalization are trivial.