About electric cars
Lately there has been a lot of buzz about about electric cars like the Chevy Volt and the Nissan Leaf. No doubt they look very cool and I was even contemplating buying one.
The only question I had was "is it worth it, really", so I decided to run a quick ROI analysis of a Chevy Volt lease vs. the total cost of ownership over 3 years of something extreme like Mercedes-Benz E55 AMG.
The total cost of 36-months lease on Chevy Volt base (taxes excluded) is $15,400 - $12,500 in lease payments + $2,500 down payment + $400 disposition fee (see terms). Add to that about $1,000 for tires and such, the total comes to $16,400. For simplicity, let's assume that the cost of charging the Volt is $0.
A nice 2005 E55 AMG with low miles (50k or less) runs about $28,000 on eBay and the expected residual value in three years would be $20,000, so the total depreciation over three years is $8,000. At 12,000 miles a year and 20mpg that is 1,800 gallons @ $4 that is $7,200 for gas. Add $2,000/year for maintenance and the total comes to $23,200.
The difference in TCO between a Volt and E55 AMG comes to $6,800 or $188/month for 36 months.
I understand there is much more involved in one's choice of vehicle than the money but one should ask themselves but to me spending $188/month for the pleasure of driving one of the best sports sedans ever made is totally worth it. Check it out on YouTube.
The only question I had was "is it worth it, really", so I decided to run a quick ROI analysis of a Chevy Volt lease vs. the total cost of ownership over 3 years of something extreme like Mercedes-Benz E55 AMG.
The total cost of 36-months lease on Chevy Volt base (taxes excluded) is $15,400 - $12,500 in lease payments + $2,500 down payment + $400 disposition fee (see terms). Add to that about $1,000 for tires and such, the total comes to $16,400. For simplicity, let's assume that the cost of charging the Volt is $0.
A nice 2005 E55 AMG with low miles (50k or less) runs about $28,000 on eBay and the expected residual value in three years would be $20,000, so the total depreciation over three years is $8,000. At 12,000 miles a year and 20mpg that is 1,800 gallons @ $4 that is $7,200 for gas. Add $2,000/year for maintenance and the total comes to $23,200.
The difference in TCO between a Volt and E55 AMG comes to $6,800 or $188/month for 36 months.
I understand there is much more involved in one's choice of vehicle than the money but one should ask themselves but to me spending $188/month for the pleasure of driving one of the best sports sedans ever made is totally worth it. Check it out on YouTube.
Labels: cars dollars-and-sense
posted by IvanB at 9:40 AM
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