Re: 1,723 miles from a tank of gas !

Re: 1,723 miles from a tank of gas ! - Saab General Bulletin Board - Saabnet.com

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Re: 1,723 miles from a tank of gas ! Posted by Ripgreat9-5 (more from Ripgreat9-5) on Tue, 10 Jun 2014 04:42:52

In Reply to: Re: 1,723 miles from a tank of gas !, EGD

[Profile/Gallery] , Mon, 9 Jun 2014 22:45:35 Members do not see ads below this line. - Help Keep This Site Online - Signup

The $13k difference doesn't account for the $4,007 Federal income tax credit ( based on plug in Hybrid battery size up to $7,500). In PA, I also received a $1,000 rebate. This brings the delta to $7,993.
At the assumed 8.8c cost per mile diff - 93,301 miles for the car to pay for itself. or approx 8 years as 12k miles a year.

If you do a 20% annual depreciation on the $13k price difference. It would still have a $2,000 value premium at the end of 8 years. The value prop reduces the break even point to 6 years or 72k. Doing the residual calc at 6 years, increases to delta residual to $3,145 or 58,000 miles.
Somewhat of a circular argument on delta residual as 20% annual depreciation is somewhat of an arbitrary number from industry averages.
The point is that I hold on to new cars I buy for at least 6 years & feel certain that I will have exceeded the break even point at that stage. (Used buyer does not care that you received a tax break 6 year earlier so the $13k delta is appropriate)

posted by 71.175.101...

Posts in this Thread:

1,723 miles from a tank of gas !, Ripgreat9-5, Mon, 9 Jun 2014 13:16:34
- over 1k on normally aspirated '87 9k, EricG, Tue, 1 Jul 2014 12:23:10
- How far on a charge? How long to change?, MI-Roger , Wed, 11 Jun 2014 09:19:52
  - Re: How far on a charge? How long to change?, ELaw , Wed, 11 Jun 2014 10:10:33
    - Similar experience with our Volt, Bill Homer , Wed, 11 Jun 2014 11:45:29
- Re: 1,723 miles from a tank of gas !, Justin VanAbrahams , Mon, 9 Jun 2014 13:33:34
  - Re: 1,723 miles from a tank of gas !, Ripgreat9-5, Mon, 9 Jun 2014 13:47:29
    - Re: 1,723 miles from a tank of gas !, Justin VanAbrahams , Mon, 9 Jun 2014 14:43:42
      - Re: 1,723 miles from a tank of gas !, EGD , Mon, 9 Jun 2014 22:45:35
        Not to mention the cost of battery replacement in 5years, vvack0matic , Tue, 10 Jun 2014 06:27:17
        Hybrid components (inc battery) 8 year / 100k warranty, Ripgreat9-5, Tue, 10 Jun 2014 06:38:18
        Yeah I guess that's decent, keeping the car under, vvack0matic , Tue, 10 Jun 2014 06:53:30
        No need..., ELaw , Tue, 10 Jun 2014 06:58:59
        Where's these super battery packs, vvack0matic , Tue, 10 Jun 2014 07:09:18
        I had heard that also..., Snowmobile , Tue, 10 Jun 2014 07:07:17
        Indeed, Justin VanAbrahams , Tue, 10 Jun 2014 10:59:40
        Another perspective, ELaw , Tue, 10 Jun 2014 05:42:48
        Gas prices: $1.03 in 1997, $1.38 in 2003 & $3.69 now, Ripgreat9-5, Tue, 10 Jun 2014 06:59:11
        Re: Gas prices: $1.03 in 1997, $1.38 in 2003 & $3.69 now, TML , Tue, 10 Jun 2014 09:11:45
        Re: Gas prices: $1.03 in 1997, $1.38 in 2003 & $3.69 now, Steve T, Tue, 10 Jun 2014 13:28:49
        Re: Gas prices: $1.03 in 1997, $1.38 in 2003 & $3.69 now, Justin VanAbrahams , Tue, 10 Jun 2014 15:01:33
        Re: 1,723 miles from a tank of gas !, Ripgreat9-5, Tue, 10 Jun 2014 04:42:52 <-- Viewing This Message

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