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His calculations are simply wrong. In his examples, the cost of annual car ownership remains $12,744 despite the different mileage estimates. If you drive onl

His calculations are simply wrong. In his examples, the cost of annual car ownership remains $12,744 despite the different mileage estimates. If you drive only 5,000 miles per year, your ownership costs are going to be much less than if you drive 13,000 miles. Why did he not adjust the cost of ownership?

VLM 12y ago
"In his examples, the cost of annual car ownership remains $12,744 despite the different mileage estimates." Its actually even worse. The ownership cost lists "Total cost per year (assuming 15,000 miles driven a year)" and that 15K miles is compared to Uber at 5K, 9K, and 13K miles. I am not surprised to discover that it costs more to drive a car 15K miles than 5K miles. There are other assumption problems. For example like almost all people I can't will myself to generate $2500 of extra marginal after tax revenue while driving (and all the math in the article assumes a zero percent income tax rate, which seems optimistic). Frankly in a taxi I'd probably be about as productive as I am in my car, listening to audiobooks. Parking costs tend to be very binary, if you live and work urban its incredibly expensive and the $1K/yr might only be a fond dream. For me, I'm lucky enough not to live urban so its free. I'm mystified how he's both making car payments on an almost new car and paying hundreds per year for maintenance at the same time. My '14 toyota came with a sales incentive or whatever its called such that I won't be paying for anything but gas until the payments are done after which a couple oil changes a year for the next 15 years aren't going to cost $400/yr. I just paid my registration at $75 which is up from $25 two decades ago ago while he's paying over $350. I do not pay property tax on my car, I don't put it past the more uncivilized areas to try that, but its not an issue for me. Maybe he's breaking down the fraction of gasoline fuel pump cost which is taxes, I could believe the numbers in that case. The arithmetic in the article doesn't make much sense.

VLM 12y ago

"In his examples, the cost of annual car ownership remains $12,744 despite the different mileage estimates." Its actually even worse. The ownership cost lists "Total cost per year (assuming 15,000 miles driven a year)" and that 15K miles is compared to Uber at 5K, 9K, and 13K miles. I am not surprised to discover that it costs more to drive a car 15K miles than 5K miles. There are other assumption problems. For example like almost all people I can't will myself to generate $2500 of extra marginal after tax revenue while driving (and all the math in the article assumes a zero percent income tax rate, which seems optimistic). Frankly in a taxi I'd probably be about as productive as I am in my car, listening to audiobooks. Parking costs tend to be very binary, if you live and work urban its incredibly expensive and the $1K/yr might only be a fond dream. For me, I'm lucky enough not to live urban so its free. I'm mystified how he's both making car payments on an almost new car and paying hundreds per year for maintenance at the same time. My '14 toyota came with a sales incentive or whatever its called such that I won't be paying for anything but gas until the payments are done after which a couple oil changes a year for the next 15 years aren't going to cost $400/yr. I just paid my registration at $75 which is up from $25 two decades ago ago while he's paying over $350. I do not pay property tax on my car, I don't put it past the more uncivilized areas to try that, but its not an issue for me. Maybe he's breaking down the fraction of gasoline fuel pump cost which is taxes, I could believe the numbers in that case. The arithmetic in the article doesn't make much sense.