‘Trend analysis’: Huge upfront vs High running costs


There are two distinct group of car buyers that I would like to highlight (as I always see such disagreements or arguments happening in our local car forums):

  1. Those who are willing to cough up a huge initial amount of moolah to buy more expensive cars that may save more fuel
  2. Those who buys cheaper cars that are not as ‘efficient’ as the more expensive ones in the market.
  • Group 1 drivers‘ primary aim is to buy a car that lower their running costs. They do not want to pay more at the gas pumps. They do not want to make frequent trips to the money-sucking cartels. They boast that they can drive for 2 weeks without filling up, or how they can travel 800KM on one tank.
  • Group 2 drivers are more willing to live with regularly visits to the pump. They do not really bother about calculating their mileage, km/l, or l/km. They buy cars without much concern about the rated fuel economy logo thingy.

 

Group 2 (TWO) drivers

Group 1 (ONE) drivers

Car Model (AT)

Korean – S$90,000 (nett)

Jap – $108,900 (nett)

Actual Fuel Consumption

Actual FC – 11-12 km/l

Actual FC – 17-20 km/l

Yearly Fuel Costs (Assuming S$2/litre & 20,000km)

S$3,636 (11km/l)

S$2,353 (17km/l)

Total Fuel Costs after 10 years

S$36,360

S$23,530

Difference in fuel costs

S$12,830

Conclusion?

The Korean car is cheaper (overall over 10 years) by $6,070. The owner of the Korean car doesn’t need to pay such a high upfront cost which may incur interest too.

  • A question: Which group is smarter? (Specifically about people comparing fuel economy. Of course there are many other factors that go through the minds of car buyers. Just addressing people who like to play the Fuel Economy ‘trump’ card to rudely trample on others.)
Image | oneshift.com | a ERP gantry

Image | oneshift.com | an ERP gantry

The above unsystematic (no random sampling, no big enough respondents and no probability calculation thingy) results can be ‘generalised’ to another situation –
  • Group 1 drivers are more angry when the ERP rates go up. They have already paid such big initial sums and do not want to pay more for running costs.
  • Group 2 drivers are more forgiving when it comes to increasing ERP charges. They paid for relatively cheaper cars and thus have more cash on hand to cough out for running costs.

Just an observation about people who regularly complain via local car forums. 🙂

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