Costs of using lots of fuel
Heres an alarming calculation.
Lets say you keep a car for 50,000 miles before selling it. Lets assume you get about 25mpg. Then over your 50,000 miles you use 2000gallons of fuel. Now lets assume its possible to get an extra 5 mpg by driving properly, tuning it properly, pumping the tyres up etc. This improves the fuel consumption by 20%, which is 400 gallons over the 50,000 miles. Assuming fuel is £3.50 a gallon this is a saving of £1400. If you do 20,000 miles a year this is £560 per year saving or £46 per month!
Now if you trade your 1.8 for a JTD (50mpg) and do the same calculation, you save 1000gallons which is the equivalent of £116 per month.
Now you can put that in perspective by looking at the size of your mortgage, and noticing that that is the equivalent of a 1.5% cut in the interest rate of a £100,000 mortgage.
Alternatively you could view it as an effective gross salary increase of £1800 p.a.
All this just by switching to a car that looks the same as your old one, but just does more miles to the gallon. The savings are even greater if the cost of fuel goes up. How likely is that?
Unless I have made a mistake, this is quite an eye-opener! Any comments?