by jdmartin » Mon 01 May 2006, 14:18:39
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')$125/wk $3gal -> 41 2/3 gallons / wk. -> 180 gal/month
One hour commute = 35 miles. 70 miles/work day.
23 work days / month. -> 1610 miles /month
1610 miles/month at 15mpg -> 107 gal/month. -> $321 / month
1610 miles/month at 9mpg -> 180 gal/month -> $540 / month
1610 miles/month at 7mpg -> 230 gal/month. -> $690 / month
Ford Explorer does a little better than 15mpg, and seems the pretty much typical SUV. There are of course bigger ones, like the Hummer, but there are also smaller ones like the RAV4.
Basically, the folks driving the Hummers couldn't give a hill of beans what the cost of fuel is; though they'll whine about it in order to participate in the coffee room talk. Those driving the Explorers of the world might alter their behavior when gas gets past the $10 a gallon range. Till then, the reduced cost of a 1500 sq ft house in the burbs will vastly outstrip the cost of the fuel used in the commute. I'd suspect though, that the real response might be that as the price rise into this $10 a gallon territory, more suburban folks are likely to purchase vehicles specifically for commuting that get 40+ mpg. They are certainly available, no magic technology involved, just consumer choice. At 40 mpg, gas prices have to get into very wierd territory before commuting long distances becomes unsustainable. At those prices you end up with wierd realities like it being economically viable to buy a custom made, plug in electric car.
Another possibility that I know anecdotal evidence of, people commuting incredibly long distances, kid and homespouse at home 100 miles out, cashspouse drives in on monday, out on friday, stays in a tiny one bedroom, no kitchen dive during the week. Personally, I couldn't imagine doing things that way, but I know real live families that do exactly that. These people might get their income in Dallas, TX, but home, school, church, clubs, taxes, and civic responsibilities are all centered on CountryVille. Surprisingly enough, they seem no worse for the wear.
My brother-in-law does something similar; he commutes into the city (NYC) on Monday morning, stays over at his son's apartment mon-tues-wed nites, and goes home thurs & fri. I wouldn't say he's no worse for the wear, but he manages. The thing is that he doesn't have to do that, because he easily makes enough money to live closer to the city (or in the city, for that matter). His wife (my wife's sister) doesn't want to move out of the town so they stay. Personally, I wouldn't do it, but hey - to each their own.
I figure that people will definitely start trading down cars to get better mpg, which cancels out rising gas prices for a while, until you hit the point in which you can't get any better mileage or the gas rises faster than you can make up the difference. The problem will be for those that can't manage to trade down. For example:
John Doe owes 20k on his Explorer, paying $350 a month payment plus a tank of gas each week at $60 (20 gals, $3 gas). The $240 in gas is eating him up so he decides to trade the Explorer (since no one would buy it for payoff) on a new Civic for $20k. With the Civic he'll only use $30 in gas each week, but they will only give him 14k for the Explorer. So by the time he finances $26k, he's paying $475 a month payment plus $120 in gas. That equals $595, $5 more than the Explorer and the expensive gas ($590). Of course, the difference can be made up somewhat if gas goes to $4, because he'd then be spending $635 with the Civic rather than $670 with the Explorer - saving $35 per month. However, that $35 per month only comes out to $420 per year. Meanwhile, he's got 2 more years of car payments with the Civic than if he would have just held steady with the Explorer.
In short, John Doe is screwed!
After fueling up their cars, Twyman says they bowed their heads and asked God for cheaper gas.There was no immediate answer, but he says other motorists joined in and the service station owner didn't run them off.