Cost of Commuting
Commuters who drive to work in single occupancy vehicles often do not recognize their full transportation costs because they do not consider the indirect costs they cannot immediately see. The price of gas is something that every commuter notices, because it is a direct cost and therefore very visible, but it is harder to see the gradual wear and tear on a car and calculate the value of time spent sitting in traffic. For local governments and taxpayers, the extra use of roads shortens their lifespans, and added emissions reduce air quality.
The cost of operating a vehicle is not definite, but the Federal Highway Administration estimates that it can range from 32 cents per mile for a subcompact car that gets 32 mpg to 53 cents per mile for a full-size sport utility vehicle that gets 13 mpg. A recent estimate by the AAA provides a range of 36 cents per mile to 91 cents per mile depending on the model and number of miles driven annually (range of 10K–20K miles annually, gas price of $2.97).
These estimates include the following costs:
- Depreciation
- Financing
- Insurance
- Registration fees
- Taxes
- Fuel maintenance
- Repairs
RATIONALE
If these total costs are taken into account — assuming gas prices average $2.97 — the cost of fuel is between 16%–38% of total costs depending on model (using AAA values). This means that when commuters are calculating their daily budget to get to work, they could potentially be excluding anywhere from 62%–84% of total costs associated with driving. Accounting for total costs of ownership on a daily basis creates a true comparison between cars and the alternatives.
