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Saving money after significant loss.
Abbout 4 years ago my car was stolen. I was very upset. For weeks in fact. I was left in a cmrisis. I just could not go out and buy another car not even a super cheap one.
You see the car I owned was fairly modest small car anyway. It was a1994 Ford Laser Hatch. And yes you guessed it it was not at the point of time of the theft -insured for theft. Well I got it backa couple of weeks later and it is wrecked. The repair costs for the mechanical side alone was at best 5000 dollars. The quote actually cost me 86 dollars as well. Well despite the loss of sleep Ive been thinking about the costs of running a car and have made the following calculations.
The purchase price of the car six years ago was 11900 dollars on the road
I estimate that on average I fill the tank once per week at an average price of 50 dollars over the last six years. That makes the cost of petrol over six hears to be 15 thousand dollars.
On top of that is registration and third party insurance which for my car is 590 dollars per year.Six years of registration and third party insurance has cost me 3500.
Then there is the service costs. I have had my car service 15 times since I bought it at an average service cost of 400 dollars. The total service costs since i bought it amount to six thousand dollars.
then there is incidentals such as car wash/wax/parting tickets/ parking meters/parking stations.
I estimate these add another 20 dollars a week on average. Therefore another six thousand dollars over six years.
so what do we have; purchase price 11900
service costs 6000
well if Isaved that amount over six years at 8% the 42,400 would be worth at least an additional 20,352 dollars.
making a total of $62752. Actually it would be much more as it would compound each year over the six years. We can safely say that the figure would be more like $80,000.
Now say I took public transport to move around as I do and the occasional taxi. I estimate I would spend an average of $40 per week. Well the 80,000 dollars had cost me roughly 260 dollars a week and Ive got nothing to show for it at the end of that time. As well Ive had to drive myself, wash it take it here there and every where in heavy stressful traffic. Whereas if I took the bus or taxi the driver would be getting stressed and not me.
As well the saving to my environmental footprint would be huge.
JUST A THOUGHT !