Cost of Gas

It's coming to this.

I like to crunch numbers.  I don’t enjoy math, but I like to see how things work out in real life.  Yeah, I don’t understand either.

I am looking for a cheap, economical car to buy.  Right now it seems like these are few and far between, so I have been looking at a Buick that is pretty cheap, that gets mileage of 19/27 (city/hwy).  This got me thinking….how much more am I actually paying for gas each month for a change in MPG?

Break out the spreadsheet.  I made a spreadsheet that shows how much I will pay per month for a car that gets an avg MPG of 20, all the way up to 35MPG, at different gasoline prices.   For instance, if I use the current price of $4 a gallon, I will pay $114.40 per month in gas (since I drive about 1000 miles a month) in a car that gets 35MPG.  If I drive the same amount in a car that only gets 20MPG, I will spend $200 in gas (an extra $85.60 for you math challenged).

As gas prices go up (and they are sure to do so with our current Genius in Chief), I will pay an extra $28.6 per month for every dollar it goes up (at 35 mpg).  At 20mpg, that is an extra $50 per month.

When Obama took office, gasoline cost about $1.87 per gallon. In our minivan (which averages 20mpg) we paid $93.50 a month to drive 1000 miles. Right now we are paying about $200 to drive the same distance.

The question I’m considering right now is this:  which is better: to buy a more economical car for more money, or to buy a less economical car for less money? If I bought a 35MPG car at $5000, the gas for the three years I owned it would cost me $5148 (at an avg gas price of $5), so the total cost would be $10148 over 3 years.  If I bought a 20MPG car at $3000, the gas over 3 years would cost me $9000, so my total cost would be $12000 over the same amount of time.

I’m thinking I shouldn’t buy the Buick. I need to find a car that averages over 30mpg.  Anybody know where I can find one for less than $5000?

Advertisements

About Steve Picray

I have been many things, but right now I am a registered nurse attempting to pay off my debt so that, God willing, I can be a pastor again someday. I have a wife and three kids. I am a conservative Christian (of the Baptist variety). This blog is about me: the things that happen to me, the things that interest me, and the things that bother me. If you have a question, just e-mail me at spicray AT gmail DOT com. God Bless!
This entry was posted in Money. Bookmark the permalink.

One Response to Cost of Gas

  1. Nofluer says:

    Don’t forget to add in the lost opportunity cost of buying a car in the first place.

    ie IF you didn’t buy another car at all, but applied it to a credit card bill, how much interest would you NOT be paying? And you should add the interest you’d still be paying (that you could have reduced) to the cost of the car that you buy (if you buy the car and don’t apply the money to the debt). And subtract it from the c0st of NOT buying a car (mileage on the van) as it will be interest you won’t pay. So by not buying a car, you’ll actually lower your cost of gas via reducing the amount of interest you have to pay on a debt.

    Did you put that spread sheet away yet?
    ;-D

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s