Fuel Economy Calculus
dieselhead
As a comment to the Chevy Volt announcement of 230 mpg, Chartguy says:
"At $40K each, with a battery range of 40 miles, that's $1000/mile of range.
Who would buy this? Maybe somebody who commutes less than 20 miles a
day, over relatively level terrain, and cares more about image than
money.
Advanced calculus won't come up with a way for the Volt to make economic sense.
"Houston, er, Detroit, we have a problem!""
People says stuff like this all the time. I want to take this thinking to its logical conclusion:
The Nissan Versa in base configuration with air conditioning costs $11k. It gets 28 mpg.
I did some rough calculations. If we assume 10k miles/year driving, and we want to keep the car for 5 years, then:
-- At $3/gallon for gas, a 50 mpg car only makes economic sense if it costs less than $14,000 (a 230 mpg car makes sense at $17,000)
-- At $6/gallon for gas, a 50 mpg car only makes economic sense if it costs less than $17,000 (a 230 mpg car makes sense at $22,000)
There are no cars that meet these criteria. So:
-- Everyone should buy the Nissan Versa
or
-- People are choosing cars mostly based on non-economic criteria (or at least non-mpg-based economic criteria)
Since the Nissan Versa base represents far less than 1% of vehicle sales, I conclude the latter is the case. Chartguy's purported problem really isn't a problem.
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Mena
When people were bailing out of thier trucks and SUV's last year. The reason was simple. $5 gas mulitplied by 20 gallon tank = $100. Depending on your commute, this could be $100 a week or $100 a day. Too much money, truck/SUV must go. It didn't matter to them that if they dumped their truck/SUV before paying it off, they would actually be paying MORE per month on that Versa. Nope.