Cost of Car Gas Expenses Comparison

Everyone pays attention to what the local gas stations/convenience stores are charging in their area, would be foolish NOT to do that. I ended up in a conversation with a friend about it, but had to use a spreadsheet to explain it as one of darn "math word problems." Here it is (and my results).

Math Problem
Bob drives a company car that gets 30 miles per gallon. He drives 36 miles per day Monday through Friday, to and from work. He passes a station on the way both ways, that is currently charging $3.75 per gallon. He heard about another station that is 2 miles past his office that is charging $3.72 per gallon. He decides on his lunch hour, to go there and fill up. How much did he save?

Solution
He didn't, it cost him $0.21 more. WHAT?!? HOW?!? Using the same 30 MPG car at each station it breaks down like this:

• Stopping at the station on the way home from work, that day he drove 36 miles
• Cost of gas per gallon is $3.75, cost per mile is $0.125 ($ per gallon / 30 mpg)
• Cost of the daily drive (cost per mile X miles) = $4.50
• Going to the station that was farther from work, that day he drove 38 miles
• 2 miles back, plus the 36 to and from work
• Only added 2 miles to get back from the station because he used his existing gas to get there in the first place. 
• Cost per gallon of gas is $3.72, cost per mile is $0.124 ($ per gallon / 30 mpg)
• Cost of the daily drive (cost per mile X miles) = $4.71
• Savings? Loss of $0.21

Summary
So, financially he lost $0.21 that day, but expand it to a monthly comparison. Same company car, same stations, Monday through Friday mileage, same cost per gallon.

• Stopping at the station on the way home from work, that month he drove 720 miles
• 36 miles per day X 5 days per week X 4 weeks in the month
• Cost of gas per gallon is $3.75, cost per mile is $0.125 ($ per gallon / 30 mpg)
• Cost of the monthly drive (cost per mile X miles) = $90.00
• Going to the station that was farther from work, that month he drove 800 miles
• Cost per gallon of gas is $3.72, cost per mile is $0.124 ($ per gallon / 30 mpg)
• Cost of the monthly drive (cost per mile X miles) = $99.20
• Savings? Loss of $9.20

So, if that continued for 12 months, loss of $110.40. All because Bob went an extra 4 miles per fill up each week. The additional miles driven would require more fill ups, so it offsets the "savings" by being 3 cents less expensive. If Bob has to fill up more often, the station sells more gas, which means they better the bottom line (profit). Plus you are likely to run into the station to grab an item that you want (a coffee, pop/soda, smokes, etc.) So they DOUBLE profit from you. But that is another blog entry related to this.

I admire business managers for figuring out how to better the bottom line by combining several profit revenues together, and blending it with marketing. Shows that business people are finally waking up on how to better the ROI.

I'm just trying to share with everyone what you need to "consider" on where you go to purchase what you need and better your wallet...

Work on your OWN Car - DIY

"Back in my day," spending time with Grandad meant that we were in the back alley behind the house, working on family cars to keep them running. I learned a lot on those weekends plus spending time with brothers of my friends that happened to be auto mechanics. That is why I spent a lot of time with my first car, a 1978 Buick Regal (pictured at right). I learned how to change spark plugs, rebuild alternators, rebuild distributors (remember those?), change batteries, replace fuses, change lights, replace engine seals, replace air filters, but most importantly to check all of the fluids an engine needs.

Over the years, vehicles have become more technological, we all became busier, the "stop shops" popped up to do that all FOR us, have caused us to forget how to do things, or just not bother to even learn. I decided today to change my own oil, replace a burnt out tail bulb, and top off my fluids in my 2006 Highlander.

While it meant I had to expend some elbow grease, bust a couple of knuckles, I have to say that it was all worth it. When done, I got to stand back and feel that I accomplished something.  Not only did I get the jobs done successfully, I learned more about my vehicle and how the rear-wheel drive cars differ from front wheel or all wheel drives when it comes to the engine. The BEST thing I experienced today? How much money I saved.

If I had taken it to one of those "quick serve" shops, it would have cost me over $70. By doing it myself, I only spent $35, which is a 50% savings. By doing it myself, my monthly cell bill is almost paid or can go out to dinner at a really NICE restaurant.

My bottom line on this, is that if you learn to do some things for yourself, you will keep money in your pocket achieve a sense of accomplishment, and take care of the baby that takes you to work each and every day...

Driving & Mirrors

I've made several entries about driving because I do a LOT of it, have been doing it for over 20 years, but love learning new things, and just want to share with you. Click the Driving Advice tab at the top to see some of my driving related entries. This one is about how to adjust your mirrors properly according to the Blindspot and Glare Elimination (BGE) settings to be able to drive more safely. Rather than re-write what has already been done, I am using the entry on the Driver's Ed Guru website as my reference. I'm summarizing that info here, but please do visit their website for more information about the BGE settings. Yeah, they even have a video you can watch...but I have it here too...

The Blindspot and Glare Elimination (BGE) mirror setting was developed in 1996 by a member of the Society of Automotive Engineers named George Platzer. The BGE setting reduces the usual two large blindspots to four mini blindzones. None of these four mini blindzones are large enough to completely hide a car.

There are several advantages to the BGE setting:

• You no longer have to turn your head to look into the blindzones.
• Only a brief glance at the side mirror and inside mirror is needed.
• By glancing at the mirror, you keep the road ahead in your peripheral vision. Turning your head completely eliminates the road ahead from your field of vision.
• Glare from the side mirrors is almost entirely eliminated. You should no longer have a trailing car’s headlights shine directly into your eyes.

This is how to set up the BGE setting:

• Place your head against the driver’s side window and adjust the driver’s side mirror so you can barely see the driver’s side of your car.
• Move your head as close to the center of the car as possible and adjust the passenger’s side mirror so you can barely see the passenger’s side of your car.
• To check your BGE settings, watch as a car passes you in an adjacent lane. It should enter your outside mirror before it leaves the rearview (inside) mirror. Also, the car should appear in your peripheral vision before it leaves the outside mirror.
• Remember, your inside rearview mirror is your primary mirror and it will take time to get accustomed to no longer seeing the sides of your car in the side mirrors.

As a personal note, I will ALWAYS use the shoulder look to confirm what I might see, even though their bullet point above says I don't have to. Sorry, been doing it for so long that I will still do it. But, employing this information means that I don't run the risk of sitting in a body shop any more than I need to...

Drive safe...