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Buying A New Set Of Wheels: What Do The Numbers Say?

Image source: Atherenergy.com

Discussion with self:

Me: Let’s buy an electric two-wheeler

“The Number’s me”: Why?

Me: For pottering around. Ok, for using it for certain tasks where I don’t want to take my car

“The Number’s me”: Like?

Me: Forget it. I know where you are going. You will say numbers justify driving the car or any other vehicle one own’s to the max and not buying new set of wheels

“The Numbers Me”: You can simply say u want to buy the scooter to justify your penchant for buying the latest fad or you like to ride a two wheeler and feel the wind in your hair. Just don’t try to make it appear as if it makes financial sense.

That’s it. I said it. Numbers mostly will not be in favor of getting a new set of wheels if you already own one and are the only one who rides / drives. What goes into this number work:

-          Cost of two wheeler, depreciated over say 7 years, with 25% remaining as resale value

-          Cost of running

-          Cost of maintenance

And the last: opportunity cost

Total annual cost of the two wheeler I was considering to buy: INR 31,707/-

Cost of running the car I already have: only fuel cost to be considered as all other expenses are sunk cost.

My working shows I can use my car for nearly 12/- kilometers in a day or nearly 370 kilometers a month and the cost will remain same as owning an electric scooter. You can check out the excel here.

Though I like riding a two wheeler, I am not putting my money on a new scooter as yet. Let me run my car to the fullest!!!

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