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Re: Another Gollum classic

Roger Thorpe  typed:
> BrianW wrote:
>
>> http://groups.google.co.uk/group/uk.transport/msg/366fb5da74e627ea?hl=en
>>
>> Gollum, once again, shoots himself in the foot by destroying his own
>> argument.  He says "... if you cost your car use honestly, including
>> those charges when the car is standing idle and for repairs", and
>> avoid "Cherry picking individual journeys here and there", the
>> average annual running cost "is typically 5000 quid per car".
>>
>> He then posts a link to an AA site which shows that the average
>> running cost, for a car with average mileage is ...  just over
>> £2,000. How does he do it?
> How did you get that from the AA page?
> If you take the median from that list (I don't know what the average
> car and average mileage are) then you get:
> total standing charge and "running cost" per mile at 20,000 miles per
> year D.43 pence per mile  = £8,886 per year.
> lower bound cheapest car lowest mileage
> total standing charge and "running cost" per mile at 20,000 miles per
> year `.43 pence per mile  = £3,2021 per year.
>
> It confuses matters (I think) that the AA here calls the mileage cost
> "running costs" and that the costs Doug refers to are the total
> costs.
> Are you using a different definition of "running costs" ? or have I
> missed something?

Well, another side to it, and one missed by the AA and by Doug, is that
their tables seem to assume buying new which is mostly done by fleet
managers or those people who have a company car where they can choose from a
list at a set price point.  Most people who buy cars for their own use, buy
neraly-new, second-hand, so depreciation isn't anywhere near as much as most
of the depreciation accrues in the first three years.

Indeed we bought a £32000 car for £7000 about 7 years ago, and it's still
worth ~£3000 so it's not lost anywhere near as much as is suggested.  By the
time we change it'll owe us nothing, IMHO, though we don't intend to change
it in the foreseeable/next 10 years.  We also, and many others I believe,
didn't need to bother with finance, so the capital costs are also useless in
the tables.

--
Dogpoop
http://www.glass-uk.org/
"You would probably do better not to bother with renewable
energy"  Doug, UK.Transport 29/04/2008 08:53.

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