Interesting thing about creating value
By Matt Adams on June 29, 2008
I have been thinking about the value of high milage cars. And something I find funny, is sometimes the balance between usability and actual MPG is so vast, that I fail to see the point, yet many consumers are hooked by the car companies that have created hype and value.
3 cars for comparison
The Smart car: $11,590
Honda fit: $13,900
Toyota Yaris (2 door): $11,550
(costs are based on 2008 models costs, and dont include tax, title, license)
Due to the demand, these prices may vary at dealers. My brother-in-law was looking for one of these, and most dealers had inflated prices.
The Smart car: 33/41
Honda fit: 28/34
Toyota yaris: 29/35
(City/highway – manual cars, based on EPA estimates)
So here is what find really interesting. I have been seeing more and more of the smart cars on the road recently. If you have ever seen one in person, you’ll know this, but they are about the size of a small golf cart.
So i guess the question is: is the value of that extra 6 mpg worth the smallest car on the road? No back seat, barely a trunk. The yaris at least has a back seat, and a larger trunk.
The math on 6 mpg, for a 15,000 mile a year driver, at current gas prices ($4.25 gal) comes out to a $267 dollar savings. I better not forget to factor in the $40 cost savings of the yaris purchase price.
Maybe this is me, but the value of a trunk and back seat is worth the $267 per year. So I clearly place my value in biggest space for the buck. But is the created value of the smart car, for the smart car buyers that $267 savings per year?