Some people simply just “have” a car …

Read this quote here on a posting on the NARP blog today …

Finally, concluding that the $96 for travel by automobile is the cheapest option, the reporter simply reflected the cost of gas and tolls, and ignoring the other very real costs a family faces, including interest payments on car loans or leases, insurance, and wear and tear on the car.

[All Things Not Considered - NARP Blog]

He’s right of course - the comparison of travel costs isn’t fair that way. But fact of the matter is, for most people who do have a car, insurance, car loan payments, etc. are just fixed costs. You have to pay them whether you actually use the car or not. And not having a car in the first place unfortunately is simply not an option in a lot of places here in the US. Especially for a family with (small) children.

So when you decide on what mode of transportation to choose for your next trip, the only incremental cost you incur for taking the car is indeed gas and tolls, plus some maintenance (but that cost is rather invisible). Whereas if you take car or airplane (or train), you will factor in the full cost.

It was different when I still lived in Switzerland. We didn’t have a car back then. But we did have an annual pass for all public transportation in the country. So the cost comparison was a lot different - the train had the “fixed cost” advantage in that case. Taking the train was essentially “free” for us …

Posted in: Uncategorized | May 31, 2007 8:21 am