TRONZ
Well-known member
I find it interesting that people writing financial "opinion" pieces on EV's deliberatly avoid talking about the commitment to buy gasoline made by each new car buyer when they sign on the dotted line.
If we just look at March 2012 and apply the most basic (conservative) and rounded statistics of vehicle ownership we get something that reads like this;
A new car will travel about 33 miles a day or 1000 miles a month which is 12,000 miles a year. The average efficiency of all new cars sold in March 2012 is up to 24 mpg (24.1 to be exact). 12,000 miles divided by 24mpg means an average user of an average March car has committed to buying and burning 500 gallons of gasoline in the first year or ownership... AND every year after for the life of the car. At a (low) $3.75 a gallon that's $1,875 each year. The average life expectancy of a new car is about 8 years. So $1,875 every year over 8 years is $15,000! And that's if gas prices stay at $3.75 a gallon for the next 8 years! If they reach (very likely) the much talked about $5.00 a gallon mark, a new car buyer at that time has committed to paying $20,000 to Oil Companies over the next 8 years!
The average March sale price for new cars was over $30,000 ($30,748 in fact). BUT the total financial commitment made by the buyer is really $45,000. And let's be very clear, these cars don't cease to exist if you sell them. Even if the car changes hands the commitment of the next car owner to hand over the rest of the $15,000 remains! And the original owner gets another car and starts the 8 year process over... but at a higher starting price on 8 years of gasoline!
I have said it before but most Americans hate Oil Companies! In fact, Oil Companies are the very last thing people want to give a buck to much less 15,000 of them! It's an absolutely insane commitment and one that people don't want to talk about much less think about. So the next time someone questions the financial justification of an EV, it's a prime opportunity to instead discuss the persons $15,000 commitment to buying gasoline. I guarantee, they will quickly change the subject.
If we just look at March 2012 and apply the most basic (conservative) and rounded statistics of vehicle ownership we get something that reads like this;
A new car will travel about 33 miles a day or 1000 miles a month which is 12,000 miles a year. The average efficiency of all new cars sold in March 2012 is up to 24 mpg (24.1 to be exact). 12,000 miles divided by 24mpg means an average user of an average March car has committed to buying and burning 500 gallons of gasoline in the first year or ownership... AND every year after for the life of the car. At a (low) $3.75 a gallon that's $1,875 each year. The average life expectancy of a new car is about 8 years. So $1,875 every year over 8 years is $15,000! And that's if gas prices stay at $3.75 a gallon for the next 8 years! If they reach (very likely) the much talked about $5.00 a gallon mark, a new car buyer at that time has committed to paying $20,000 to Oil Companies over the next 8 years!
The average March sale price for new cars was over $30,000 ($30,748 in fact). BUT the total financial commitment made by the buyer is really $45,000. And let's be very clear, these cars don't cease to exist if you sell them. Even if the car changes hands the commitment of the next car owner to hand over the rest of the $15,000 remains! And the original owner gets another car and starts the 8 year process over... but at a higher starting price on 8 years of gasoline!
I have said it before but most Americans hate Oil Companies! In fact, Oil Companies are the very last thing people want to give a buck to much less 15,000 of them! It's an absolutely insane commitment and one that people don't want to talk about much less think about. So the next time someone questions the financial justification of an EV, it's a prime opportunity to instead discuss the persons $15,000 commitment to buying gasoline. I guarantee, they will quickly change the subject.
