Story Problem.
A car costs 40 cents per mile to drive. (I choose that number arbitrarily. The IRS says 40.5 cents as of 2005; way back in 1995, the AAA said 41.2 cents... so I'm being kind.)
Bikeboy figures it costs 4 cents per mile to ride his bike. (That includes special bike clothes, as well as bike upkeep and repair, etc.)
If his round-trip commute is 8 miles, and he makes that commute 240 times a year, how much will he save by riding the bike all year?
THE ANSWER.
Total miles traveled - 1920. (8 miles, 240 times.)
Cost in the car, at 40 cents - $768.00
Cost on the bike, at 4 cents - $76.80
Savings - $691.20
The reality is, I figure I save substantially more than that each year. Here's how I figure.
Let's suppose I buy a second family car, for use solely as my commuter vehicle. I don't need a fancy car, so I buy one that's CHEAP. Let's say a $6000 used car... which would probably be $200 payments, over 3 years, no? So - the car's PAYMENTS are going to be $2400/year out of pocket, at least until it's paid off. (For the record, my bicycle cost $900.) Okay... now I have insurance to buy. If I owned the car free and clear, I could get by with liability only... realizing, of course, that I'm done if I crash and it's my fault. Since the bank owns the car with me, I need the full-zoot insurance. But it's my second car, and I'm the only driver, and I'm a good driver... I bet I could get insurance for $250/year, maybe? (A guess.) So - I'm up to $2650 a year, and I haven't bought any gas, or paid for any repairs, or oil changes, or tires, or...
(The bike - $76.80 a year. Or, let's get crazy! Let's say $100 a year!)
What would YOU buy, with an extra $2500 a year? (Or even an extra $600+ a year?)
Another real-life illustration... My friend Betty (who was largely responsible for getting me back on a bike) bought herself a sweet bright-red Toyota Celica. When it was 3 years old, it still had less than 5000 miles on it because she drove it so rarely... and it was worth more than she paid for it new!
