Tuesday, July 21, 2009

Misleading Statistics, Again

I was looking into new apartments up here around Pierce and I was comparing them to the cost of driving daily. So I looked into AAA's driving cost listing. http://www.aaaexchange.com/Assets/Files/200948913570.DrivingCosts2009.pdf They list the price per mile as about 55 cents per mile if you are a low mileage driver and 35 cents per mile if you are a high mileage driver.

But if you notice the cost per mile trends downward as you get to higher and higher mileage. In fact if you plot the total cost to drive 10,000 miles, 15,000 miles and 20,000 miles, you find that the slope (the actual cost of driving each mile) is nearly linear. They have included the base cost of owning, insuring, and maintaining the car into the cost per mile. In fact the cost per mile is only about 16 cents per mile.

So why does this matter? You do have those ownership costs! Well of course you do, but very few of us are really going to totally get rid of the car. So in figuring the cost of driving verses public transit we want to know how much extra each mile is going to cost us. That's 16 cents for a small car (I'm guessing about 9-11 of those are for gas, the rest for maintenence.)

In my case, driving to work each day (instead of once a week and staying here) would add about 1200 miles per month. At 35.4 cents/mile that is $425, and it would be reasonable to pay up to that much for a place to stay up here, but at 15.8 cents per mile it is only $190. There are of course intangibles both ways. (Sleeping next to my wife, seeing my family, verses the wear and tear on me.), but it is a very different picture.

I just hate when the stats are misleading like that. I'm no fan of long commutes or excess driving, but let's not claim that simply not driving is going to save you $400 when half of that is just in the cost of owning the car.

1 comment:

PLove said...

Shhh, I like being able to charge mileage at $0.55/mile :)