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Yes it is a fact for most people when you run the numbers all inclusive (not just car payments but insurance, gas, tolls, tickets, repairs, parking, oil changes
by kfarr 4y ago
Yes it is a fact for most people when you run the numbers all inclusive (not just car payments but insurance, gas, tolls, tickets, repairs, parking, oil changes, etc) they just don't pencil out. In fact Uber and Lyft knew this and part of their "success" was in leveraging sunk cost fallacy that car owners want to "make extra money" with an underwater asset whose depreciation from making said "extra money" is not included in the calculation of most drivers.
- gruez 4y ago>Yes it is a fact for most people when you run the numbers all inclusive (not just car payments but insurance, gas, tolls, tickets, repairs, parking, oil changes, etc) they just don't pencil out. Can you define what "pencil out" exactly means? I searched around and it looks like the TCO for a car ranges around $1000-$1100/month if you're buying used. At average US hourly earnings[3] of $33.03/hour, that works out to a break-even of 31.8 hours/month. If you're single and don't do anything other than commute to work (30 min each way), I agree that this doesn't "pencil out", but as soon as you have kids or a partner (twice the amount of errands to run!), it easily becomes worth it. [1] https://www.caranddriver.com/auto-loans/a41545320/average-cost-of-owning-a-car/ https://www.caranddriver.com/auto-loans/a41545320/average-co... [2] https://www.nerdwallet.com/article/loans/auto-loans/total-cost-owning-car https://www.nerdwallet.com/article/loans/auto-loans/total-co... [3] https://www.bls.gov/news.release/empsit.t19.htm https://www.bls.gov/news.release/empsit.t19.htm