If You Drive A Smart Today, You Can Drive An Exotic Later

Jack Baruth
by Jack Baruth
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if you drive a smart today you can drive an exotic later

Two weeks ago, I wrote about the slings and arrows of car2go membership. A few members of the B&B took issue with my claim that car2go was the cheapest way to operate an automobile. One of them decided to do the math.

And did he ever.

If you have a modern version of Microsoft Excel you can download his spreadsheet at this link. It doesn’t work perfectly in OpenOffice, but other than “Free Software” nutjobs such as myself I doubt anybody uses OpenOffice, so that’s totally fine.

“Being in finance allows me to separate hype from speculation (most of the time),” he notes, and since he’s one of our readers who hails from outside the United States, about sixteen hours by air outside in this case, I’ll give him a pass on the idea that “being in finance” and “speculation” are anything but joined at the hip. The spreadsheet allows you to plug in various values for leasing vs. buying vs. car2go. What I like about it is that it allows you tweak nearly every parameter instead of limiting you to fixed assumptions about pricing or residuals.

Having fussed with the spreadsheet for an hour or so, I can tell you that it is very difficult to make the numbers come out in favor of leasing or owning unless you really get funny with your assumptions or you plan for some very long trips behind the wheel of a Smart. But even TTAC readers who have no intention of ever getting behind the wheel of a shared automobile will enjoy the lease vs. buy calculations.

Some of us, however, require a little more out of our lives than the quiet satisfaction of knowing that one has thoroughly crunched the numbers and reduced one’s transportation expenses to a minimum, all the better to save a million dollars or so in today’s Bernankified fiat currency for an extra thirty days’ worth of life in a nightmarish assisted-living facility at the dementia-ridden end of one’s mortal coil. So our anonymous-by-request B&Ber has thoughtfully added a corner to the spreadsheet that allows one to plan a splurge with one’s savings. It includes a flight to California and an exotic-car rental. There’s even space for some expenses at the Chateau Marmont, where your humble author took a BMW i8 a few months ago and where it is possible, given the right combination of car, cash, and confidence, to engage in unprotected sex with someone who had a minor role in an episode of a made-for-cable sitcom. If that is not an incentive to save a bit on your daily grind, I don’t know what is!

I’d encourage you to download the spreadsheet and try your own calculations. Let us know how it goes. As for me — well, I compared car2go with leasing an Aventador or buying a Viper ACR, and I can state with conviction that the car-share service is definitely the lowest-cost option.

Jack Baruth
Jack Baruth

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6 of 39 comments
  • Madman2k Madman2k on Aug 27, 2015

    I would have to rent it 5 days a week for 10 hours per day because I work on a military base and couldn't just drop it off when I get to work, so I'd spend $65,250 on the car2go. My take home pay is quite a bit less than that amount, so that really doesn't work.

  • SPPPP SPPPP on Aug 27, 2015

    Interesting spreadsheet. Turns out that keeping my old warhorse as my commuter car should save me $10,000 per year versus using Car2Go. Great! (Not that I planned to try it.) Now what to do with the extra $10k? Hmm, take a cruise? Buy a case of champagne? Maybe ... pay for housing? :) ... I think it's easy to get caught up in the numbers and overlook a very important point: If Car2Go cost that much less than to own a car, then one or more of these things must be true: - Private drivers are being vastly overcharged for insurance and parking - People are buying or leasing way more car than they need - Car2Go is undercharging people and will soon go out of business So which of these things are true? You decide!

    • See 3 previous
    • SPPPP SPPPP on Aug 28, 2015

      @S2k Chris Ah, sorry. I misunderstood you. Also, the way comments and replies are threaded here is a bit confusing at times.

  • Analoggrotto Buyers are skipping these in droves and heading down to sign the golden paperwork for a new Telluride. ATPs speak volumes and we have 'em. Our customers are telling us that we offer Mercedes quality for a better deal, and our suite of luxury features rivals any luxury automaker. Insult me all you want, but AVMs, DSDs and BSODs tell the truth.
  • Ted Lulis The Exodus from California is mind-boggling. No surprise from the rectum of the country
  • Mr Imperial Seeing the adjusted-for-inflation amount always makes me sick, I can't believe how much it has gone up in my 40-some-odd trips around the sun. Still fondly remember seeing these and Ford Explorers everywhere.
  • Kyl65759578 👋
  • ToolGuy I appreciate the thoughtful comments from the little people here, and I would like to remind everyone that Ford Motor Company offers a full range of vehicles which are ideal for any driving environment including New York City. The size and weight our of product portfolio has been fully and completely optimized to be friendly to the planet and friendly to pedestrians while consuming the bare minimum of resources from our precious planet (I am of course a lifelong environmentalist). Plus, our performance models will help you move forward and upward by conquering obstacles and limits such as congestion and your fellow humans more quickly at a higher rate of speed. I invite you to learn more at our website.Signed, William Clay Ford Jr.