Originally Posted by
I-Like-To-Bike
The OP's calculations for actual $ savings considering reduction in fuel, parking and toll expenses for commuting by bicycle instead of car provide a much more accurate portrayal of the potential cost savings realized by bicycle commuting than Mr. Money's misleading version.
I included all of those in my analysis (initial cost, depreciation, petrol, tax. insurance, maintenance, etc...) and arrived at £0.30/mi or $0.39/mi.
However, that doesn't tell the full story as the US/UK aren't really comparable, but I think the end result of car ownership is (about one net median month's salary per year).
1) Car seems to be less expensive over here (especially used cars as being LHD means they have a small second-hand market). I bought 3-year old VW Golf (cash) with 6k miles for 50% of the original price of £17k.
2) Wages are lower nationwide. Median wage for a full-time employee is £37k (pre-tax) or £2450/mo after tax.
3) We use cars less and the average yearly distance is 7400 miles, which would be £2200/year in my calculation (or about one month of net salary)
I propose that the median salary is higher and a similar result would occur (one net median month's of salary would be required).