Chuckanut
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Does that break even analysis take into account the cost of capital? I find most times that is ignored. But 6 years of some assumed gain (4%?) isn't peanuts, depending on what your cost differential was.
-ERD50
Good Point. The answer is no.
Back when the I bought the car I really thought that gasoline would be headed to $4 a gallon and more. That would have really juiced the payback! That prediction proved about as good as my interest rate predictions.
A quick back of the envelope estimate using 7% return for investments indicates that I may have to go about 100,000 miles to get my opportunity cost back. Calculating the payback reminds me of calculating the break even age for taking SS. If only we could predict the future. Note: according to GasBuddy my area has some of the most expensive gasoline in the USA.
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