Fuel Economy vs Fuel Price Operating Cost

Gasoline & diesel passenger vehicle total cost structure largely related to two functions

1 Depreciation of the initial price paid for the vehicle or capital cost of the vehicle

2 Operating costs which largely consist of fuel prices

Lets consider 200,000 miles at $5 gallon to see how fuel prices stack up over time

10 MPG sports car or SUV with large engine / 20,000 gallons or $100,000 

20 MPG efficient SUV mixed use / 10,000 gallons or $50,000

40 MPG hybrid electric or 8sp Automatic sedan 5,000 gallons or $25,000 

I pay $5 USD2022 for 1 US Gallon of 87 octane E10 gasoline near Seattle, Wa, USA to fuel the ~11 gallon tank of my 2005 Prius which achieves ~ 42 MPG winter & 48 MPG summer. 

I paid $26,500 for the Prius in 2005

Insurance costs me about $60/ mo now 

I spent about $100 /mo on gasoline now for commuting to work & back & for grocery errands etc 

So over the lifetime of the car, the fuel costs will easily eclipse the total price paid for the car!

In vehicles with lower fuel economy, fuel costs will rapidly eclipse the capital price paid & depreciation

Thinking like a business, in TCO or total cost of operation or LTC lifetime total cost, if you buy a brand new car for full price, you must keep it for 20 years & fully extract all useful value from the vehicle to maximize the invested capital cost structure! 

Consider picking a fuel efficient vehicle to keep your fuel costs lower to lower your LTC or TCO. Toyota Prius the most reliable vehicle with highest fuel economy combination & lowest TCO & LTC if kept until fully depreciated for the design life of 350,000 miles or 20+ years! 

I do the oil changes & other basic maintain DIY style at home, in a parking lot, or wherever I can, even on random streets while on road trips! Thankfully the oil change, spark plugs, filters, and other basic services on the 2005 Prius are easier to do^^ Thank you Toyota!