This analysis is wrong on several different levels.traveltoomuch wrote:I disagree.
Maintenance will run $.06-.10/mile or more. The AAA article separates maintenance and tires.
http://newsroom.aaa.com/2015/04/annual- ... a-archive/
Part of depreciation is mileage-based, not age-based. Case in point: when I've had insurance total cars, they based valuations on an expected/average mileage and adjusted ~$.07/mile for over/under.
Adding those together, and taking the low end of the maintenance number, we get $.13/mile. For a 500 mile trip, that's $65. If the rental is only $40, renting makes financial sense. And, again, that's using the low-end maintenance estimates.
First off, your $.07/mile depreciation is simply NOT reality.
- Even if we assume this number is accurate, it only applies IF the vehicle is totaled in an accident!
- If the vehicle is driven 8-10 years and 100K+ miles like most here do, there is zero depreciation from a 500 mile trip.
Regarding your maintenance costs...
- The AAA costs you quoted "Also includes the price of a comprehensive extended warranty with one warranty claim deductible of $100"?
- Including $3000 extended warranties is bogus and artificially drives up the supposed cost/mile for maintenance.
Driving your own vehicle likely costs something south of 6 cents/mile. But let's stick with your wildly inflated 13 cents/mile.
- As you stated, a 500 mile trip in his own vehicle would cost $65.
- The OP has a family of 5, is taking a 4 day trip, and needs a full size sedan or larger.
- There is ZERO chance he can rent for the $40 you quoted. That would be $10/day.