Originally Posted by
SPECELIZEDRIDER
The 5 year cost of owning various vehicles on Edmond's and many vehicles such as a 2004 used Honda odyssey can cost $44,000 over a 5 year period.
A typical Chevy Silverado 2009 used can cost 54,000 in a five year period. The least expensive vehicle I found was about $30,000 over a 5 year period, now these are newer cars as I couldn't get data for older cars, but it got me thinking of how much we pay to drive a car, now if I was rich well maybe it wouldn't matter so much, but an eye oper never the rest, 30 to $50,000 in the bank makes a difference.
Your low end, $500 a month, is a pretty fair estimate, although most car owners will get red-faced and argue with you that they spend much less (though few will take the time to first consider insurance, depreciation, repairs, etc., and do the math).
The real eye opener is the analysis of discretionary income, especially for the 'working poor'. Say someone makes $15 an hour, or about $2500 gross a month. They might take home maybe $1800 a month. What's an average rent for a modest apartment, say 750? Add in $100 for power, $150 for cable, internet and cell phone. Maybe they spend $300 for groceries and eating out. That's a quick and easy $1300 spent, without any unusual expenses.
What's left?: $500 to spend any way you wish. And the vast majority will spend the entire $500 on a car without thinking twice about alternatives, or making any kind of budget. They are trapped in an eternal cycle of poverty, and never notice the 3,000 pound anchor tied to their necks, or consider releiving themselves of that burden and having a chance to decide how to save, invest and enjoy the benefits of that small portion of their income which is truly discretionary.
Originally Posted by
AsanaCycles
That was an interesting read. He makes a seemingly valid point, but offers little evidence along the way to back up his claims (not that I'm doubting them). I think he's spot on about the vortex of faster transportation ironically putting desired destinations further out of reach, especially for the poor.
But, I'd say that the internet and efficient delivery have begun to eat away at the problem since this was published. They allow you to 'shop' virtually at a practically unreachable destination, and have the goods delivered to you at a small fraction of the cost of travelling both ways.