Amazing. In addition to being amazed at how much I spent personally on health care ($800/mo insurance, $200/mo deductibles and medicines), I was utterly surprised to discover that our family spends the third most expense on transportation. ($500/mo car payments, $150/mo insurance, $50/mo taxes, $100/mo gas, $50/mo repairs – $850/mo total). And, we have two inexpensive Toyotas (Corolla and Yaris).
More typical profiles of a two-car family (say one SUV and a Camry) are $1000+/mo for life.
“How can a poor man stand such times and live?”
$1000/mo isn’t a minimum necessity, but $500/mo likely is. Everyone outside of concentrated cities needs A functioning vehicle, insured, legal. That is a big nut, that in our parents’ generation was not a minimum necessity, but a choice.
In looking at the costs, the majority of transportation costs are the costs to own the vehicle. Borrowing $10,000 (four years of depreciation of value – cost less recurring trade-in value) costs $250/mo, excise taxes – $25/mo, insurance – $100/mo, maintenance/storage – $25/mo. A dependable new or late model car costs at least $400/mo to own, without driving a mile.
If the cost of driving and repairs due to use are $100 (1250 miles at 30 mpg at 2.50/gallon), then 80% of the costs of transportation are ownership costs. Only 20% are the cost of gasoline and repairs.
Even at $5.00 gas, that shift results in 33% use costs compared to 20%.
Sustainability is simplicity for individuals and live and let live socially.
There is a better way, a much better way. And, transportation is really the first area in my assessment of personal costs, that an alternative transportation model would make a material difference in the cost of living. (Correct that, energy efficiency in homes makes a material difference as well.)
My model is based on three multiplying factors in the quantity of emissions and also the number of miles (and the number of vehicles) needed to provide excellent origination to destination transportation services.
1. Improved technology and improved choice of technology used for purpose.
The measure of this is the average miles per gallon that vehicles realize. It is possible to double average gas consumption apples to apples. It is possible for a vehicle that gets 25 mpg (considered attractive currently) to be replaced by hybrid and plug-in hybrid vehicles with comparable power and features that realize 50 mpg.
A component of increasing the average, is to use smaller vehicles (with more electric component) to accomplish local needs. I don’t need to drive a truck to go grocery shopping. My Yaris works fine. (Better actually as it is easier to park.)
Improving technology does not decrease the average ownership costs per need, but does reduce emissions and does reduce the average operating costs incidentally.
Shoot for double, realizing a reduction of emissions by 50%.
2. Improving the utilization of vehicle trips. 70% of private auto usage is commuting. Ride-sharing can reduce emissions and miles by half of that. Innovative mass transit services can multiply that further. I’m appalled at the mediocrity of mass transit in western Massachusetts. And, to compound it, the funding governments and transportation “leadership” in transit authorities adopt the self-fulfilling logic of downward spiral of services. Until transportation authorities realize a level of service that functionally allows commuters to give up that extra vehicle, they won’t realize increase in ridership. But, once they confidently provide that level of service, they will reach economic viability.
Ride-sharing and mass transit (“utilization”) can realize another 50% multiplying improvement.
3. Social design and settlement
Currently, too many of us live in megalopolis’s. Sprawl. Average commutes are 24 mi currently. By emphasizing regional integrity, individuals can reduce that average commute distance to 12 mi, 1/2.
The policies that support coherent regionalization of economies rather than sprawl, also effect freight and other personal transportation needs.
If people only needed to transport one-half the distance, realizing another 50% improvement in emissions, and cost savings, the result in very broad strokes would be a total of 87.5% emissions savings, and 75% cost savings.
Rather than 1 person commuting 25 miles alone in a vehicle that gets 25 mpg, 2 persons commuting 12.5 miles in a vehicle that gets 50 mpg.
Simple, realizable (with work).
How to get there?
Proposal for an integrated transportation services company (please read “Natural Capitalism” by Amory Lovins and Paul Hawken, articulating a needed change in corporate mentality from product sales orientation to services orientation. IBM did it. General Motors could as well, “God forbid”, better that we capitalize and create something really new with more democratic features.)
1. Private exclusive ownership/leasing preferably of small energy-efficient neighborhood/local oriented vehicles. Preferably electric or plug-in hybrid, thereby realizing the energy efficiencies of the electric motor drive train, over very wasteful internal combustion. ($200/mo per vehicle including all maintenance)
2. Access to neighborhood sited fleets of vehicles (larger cars, vans, small trucks). The significance of access to a fleet is that the ownership costs of the vehicles are shared, and more of the expenditure on the transportation are operating costs. As vehicles must be owned in integers (0, 1, 2), and most owners don’t fully utilized the vehicles they own, they end up either paying more than they can afford for inefficiently utilized service, or do without.
The fleet allows them to pay for 1/2 a vehicle’s costs if they only need 6,000 miles/year of service. ($50/month subscription + for example, .25/mi including fuel (more likely some combination of time and mileage)
3. Commuting services focused on origination to central employer. This would eliminate the need for a second/third private vehicle.
4. Frequent commuting services along routes. If mass transit were available every 10 minutes, MANY would give up their second/third private vehicle. A local example is the route between Greenfield and Amherst, or Greenfied and Northampton, MA. A large number of residents commute between those locales, but mass transit provides only 6 trips daily.
5. Ride-sharing matchmaking
These services could be provided by an integrated entity, or by stand alone entities providing their sliver of transportation needs, comprising practical options to reduce miles and reduce auto ownership needs.
The interesting aspect of this proposal is that it is NOT as capital intensive as the more highlighted investments in technology. The majority of the savings in cost and emissions result from personal choices, cooperation, innovative enterprise, and rational public policy.
Fleets can be organized as cooperatives, with individuals contributing as capital their existing vehicles (only half needed for the fleets, the rest sold to capitalize other services). Car rental outlets can offer options that facilitate periodic vehicle use, inexpensively. (An innovative example is ZipCar, which basically runs a self-service car rental system. It applies the same logic of self-service as supermarkets, that had represented a shift from clerk service to customer self-service.)
Ride-sharing can be informal or formal. Leasing of small vehicles already exists.
There are obstacles. The business model for large auto manufacturers are of sale. Dealerships are restricted in the types of transactions that they can enter, and are protected from encroachment of other business models. Big business prefers to be the exclusive source for service, rather than cooperative or shared neighborly.
Like libraries cut into publishers’ profits, friendly sharing cuts into car manufacturers’. (Most car manufacturer profits are in the financing area anyway. Financing to dealers and financing to owners.)
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