Fuel cost analysis August 17, 2005, 01:47:36 pm Yahoo Message Number: 56937Bill Lemons passed along this tip:http://www.rversonline.org/ArtFuelCostAnalysis.html> has a rather interesting analysis of the effect that increasing fuel prices have on the total cost of the RVing lifestyle. Conclusion: depending on how you use your RV, doubling the cost of gas could increase your costs by as little a 6%. There's even a link to an Excel spreadsheet so you can do your own analysis. Worth a look if you enjoy playing "what if" games. :-)Andy Baird
Re: Fuel cost analysis Reply #1 – August 17, 2005, 01:59:37 pm Yahoo Message Number: 56938Quote"Bill Lemons passed along this tip...""...FuelCostAnalysis... Worth a look if you enjoy playing "what if" games. :-)"Quote Andy Baird AndyIt doesn't take much "analysis" when you pull away from the gas pump, as I did this week, with a $98 debit slip in hand. You already know what next month's credit card statement will show you.Steve S. Lazy Bones
Re: [Life With A Lazy Daze RV] Fuel cost analysis Reply #2 – August 19, 2005, 01:58:43 pm Yahoo Message Number: 57019I tend to look at this at little differently. The cost of insurance, license and monthly payment, if any, are costs that you can't do anything about if you are going to own an RV, even if it just sits in the driveway. Beyond those costs are what I would call operating or variable costs. Those you can control by the amount you drive. If we use the numbers shown in the Excel example, variable costs are gasoline, camping fees, tire replacement and maintenance. Here is how the variable costs change with an increase in fuel costs, assuming the example's 8,000 miles and 8 mpg. I am ignoring the cost to eat as that can vary all over the ballpark, depending upon the individuals. You have to eat anyway.Fuel - $1.25/gal X 1,000 gallons = $1,250 Camping Fees - 80 nights @ $20/night = $1,600 Tire Replacement - $.04 X 8,000 = $320 Maintenance - $.04 X 8,000 = $320 Total Variable Costs @ $1.25/gallon = $3,490 If we then double the cost of fuel to reflect today's costs, the total becomes $4,740, an increase of 35.8%. I think this is a more realistic way to look at the effect of fuel costs on our RV use. I am ignoring the effects of the higher fuel costs on the other variable costs, which can't help but increase as well. If we take these into consideration, the increase in variable costs becomes even greater. Folding the increase in fuel cost in things like depreciation doesn't help those of us who consider a $100+/month increase in anything to be a significant amount of money.Dick
Re: [Life With A Lazy Daze RV] Fuel cost analysis Reply #3 – August 19, 2005, 03:58:06 pm Yahoo Message Number: 57022I think you left out an important cost: Depreciation. Including it would further decrease the importance of the cost of fuel.best, paulQuoteI tend to look at this at little differently. The cost of insurance, Quotelicense and monthly payment, if any, are costs that you can't do anything about if you are going to own an RV, even if it just sits in the driveway. QuoteBeyond those costs are what I would call operating or variable costs. Those Quoteyou can control by the amount you drive. If we use the numbers shown in the QuoteExcel example, variable costs are gasoline, camping fees, tire replacement and maintenance. Here is how the variable costs change with an increase in Quotefuel costs, assuming the example's 8,000 miles and 8 mpg. I am ignoring the Quotecost to eat as that can vary all over the ballpark, depending upon the individuals. You have to eat anyway.Fuel - $1.25/gal X 1,000 gallons = $1,250 Camping Fees - 80 nights @ $20/night = $1,600 Tire Replacement - $.04 X 8,000 = $320 Maintenance - $.04 X 8,000 = $320 Total Variable Costs @ $1.25/gallon = $3,490If we then double the cost of fuel to reflect today's costs, the total becomes $4,740, an increase of 35.8%. I think this is a more realistic way Quoteto look at the effect of fuel costs on our RV use. I am ignoring the effects of the higher fuel costs on the other variable costs, which can't Quotehelp but increase as well. If we take these into consideration, the increase in variable costs becomes even greater. Folding the increase in Quotefuel cost in things like depreciation doesn't help those of us who consider a $100+/month increase in anything to be a significant amount of money.
Re: [Life With A Lazy Daze RV] Fuel cost analysis Reply #4 – August 19, 2005, 05:03:40 pm Yahoo Message Number: 57025That is exactly why I left out depreciation. It is not a month-to-month, out of pocket expense that you feel when the price of fuel goes up. My method shows the immediate impact, not something you may or may not experience many years down the road. Many of us will not outlive our RV's, so depreciation cost is irrelevant unless you are blessed with the big bucks and can afford to change vehicles every few years. I know many people who bought an RV after retirement with IRA's or funds from downsizing or eliminating their homes. Then that's it! Depreciation is meaningless to those folks as they will never deal with it. Their heirs might. For most of the people I know, out-of-pocket, right-now costs are far more important to them than the purchase cost of the vehicle which is a one-time event. It all depends upon if you want to measure from a strict accounting standpoint, or from the pain to the current pocketbook standpoint.Dick
Re: [Life With A Lazy Daze RV] Fuel cost analysis Reply #5 – August 19, 2005, 05:08:14 pm Yahoo Message Number: 57026QuoteI think you left out an important cost: Depreciation. Including it would further decrease the importance of the cost of fuel.best, paul So true. For a new RV, depreciation of 50cents/mile is not uncommon. But for a used one (10-12 years old), depreciation is probably closer to 10cents/mile. And one can safely assumes that a 20 years old unit no longer depreciates.Sam
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