Originally Posted by Alex Mackinnon
Total cost of ownership on most cars is a lot higher than just the cost of gas. Usually it's closer or over $0.50/km. Some of the costs however are definitely sunk.
I usually double the cost of gas for my actual operating expenses. But my car is old and has essentially stopped depreciating, newer cars will cost more in depreciation and less in maintenance.
The other numbers are actually quite meaningless because they are going to happen anyway. And if you do want to include them my car is quite expensive to have the oil changed @ about $100 per service at Mr. Lube just for oil.
So $100 / 5000km = 2 cents. So if I have to drive 10 km extra every day that/s a massive 20 cents extra per day. Like I said, quite meaningless in the grand scheme of things.
Now tire wear and tear? Again quite a meaningless number. If it is raining, what about the extra time my windshield wipers need to go for an extra 10km, I mean that's more wear and tear right?
Honestly the biggest factor in the decision is fuel costs. It is by far the most immediate, noticable, and largest amount of a car's running wear and tear. There is a difference if I were comparing driving to taking the bus. Then you need to factor in TCO.
But in this case we're just saying "what if you have to drive 10km more." in which case it doesn't really matter. The other factors would be there anyway because you NEED to drive that distance still.
It's not $0.50 cents a KM in the grand scheme of things though. It would be TCO wise but commuters will still need to commute. They don't have a choice. And if they take the toll bridge and drive less distance they won't magically sell or trade in their cars earlier saving money that way. People in general drive their cars into the ground. If you want to know real statistics though, your TCO on your average sized commuter car is closer to 25 cents a km. On a mini van you'd be up to around 30-35 cents per km. So if you factor everything into it, driving an extra 20km per day is around $5 so you're still technically saving if you factor everything in.
And my point that the government saying people will see "massive" cost savings is a major lie. I've heard everything from massive to huge used in their description of Gateway's cost savings to motorists.
They should instead say you will see TIME savings. But cost savings will not be there.