by Outcast_Searcher » Wed 19 Aug 2020, 12:35:27
$this->bbcode_second_pass_quote('Revi', 'T')he average person spends about $9000 a year on their car in the US. That's the total cost. That means if mom and dad and 2 kids have cars they are spending around $36,000 to keep everyone motoring. Very little money for anything else...
I still scratch my head at this. It implies a LOT of VERY wasteful behavior, re car spending by Americans. (Funny how we're doomed and tens of millions of families are so poor they're on the brink of starvation (re fast crash doomers) and YET, people have OODLES of money to WASTE on fancy, expensive, downright STUPID car spending choices -- ESPECIALLY if finances are supposedly so very tight for the average US family.)
For me, my late model midsize Camry expenses look roughly like this (pre COVID-19, so more driving typically), my expenses are roughly:
1). $2000 a year depreciation an the car, assuming I buy it for $26,000 and sell it for $2000 a dozen years later. I pay cash so no interest payments. I buy toward the bottom end of the spectrum re features, since to my old ass, the bottom end re middle class new car features is AMAZING and LUXURIOUS and I'm not "suffering" at all -- oh, and I save ten to fifteen grand on things I don't need. (For example, instead of paying a dealer $1000 to $1500 for built in nav, I buy a nice, portable after-market system for $100 from Amazon, which works perfect -- and if it breaks or I want to upgrade the tech. in 5 or 8 years, no problem.)
(Oh, and I'm confident I can get $2000 for a 12 year old well maintained Camry with only 42,000 miles on it, given their reputation. If I can convince the buyer I'm not playing odometer games, I might get double that or even more).
2). $600 a year in insurance. This is full insurance from State Farm with a normal level of deductibles and extra liability, with a multi-policy discount. It's more than that early on, and less as the car ages, of course.
3). Driving about 300 miles a month on average, assuming gasoline prices of $3 a gallon over time, and getting about 25 mpg real world, that's $432 a year for gasoline. $100 a year for full synthetic oil change, the occasional air filter replacement, etc. And the way Toyotas hold up, If I allocate $470 a year for other maintenance and repairs, that's PLENTY to cover tires, which I replace every 6 or 7 years to prevent dry rot, fluids, brakes, and the occaisonal thing which might actually break. So that gives me $1000 a year for gas, oil, maintenance and repairs.
4). So then, things like licensing and incidentals like a nav system, jumper cables, electric tire pump, a few tools for the car, etc, and some buffer for repairs, let's call everything else $400 a year.
So I get $2000 depreciation, + $1000 gas/oil/maint + $600 insurance + $400 misc or $4000 a year TOTAL car expenses, and buy new convenient cars, and have others do all the work on the car beyond very minor things.
(Oh, and I could save a meaningful amount buying a used moderate mileage, say, Corolla every 6 years. I'm just talking about the lazy man's convenient way with no gotchas or assumptions about used cars, to make the numbers simple).
...
Now, I realize most people will spend $1200 more on gasoline and another oil change. And I realize most people will have more repairs when they drive the thing 150,000 miles in a dozen years instead of 42,000 miles.
But if we add $2000 a year MORE for gas, oil, and maintenance, we STILL only get $6000 a year to own a middle class car in the US.
Aside from thinking my car insurance is way cheap re no accidents, low mileage, my age, I still think MUCH of that final 3000 bucks per car per year is just CRAZY spending by preeners, on average. (Yes, I think blowing $50K and up on a truck, SUV, or sporty car is preening and wasteful, for people who don't have money to burn, and for the environment, regardless).
Given the track record of the perma-doomer blogs, I wouldn't bet a fast crash doomer's money on their predictions.