The Cost of Driving a Car

There is a recent analysis in American Spectator that reads like it came from my friend Jerry Heidenreich…  The author notes: “So gas prices zoom up to, and sometimes past, $3.00 a gallon, and here I am driving a 1992 Cadillac Sedan de Ville. You might imagine I’d be shopping for an economy car to cut my weekly bill at the gas pump. Au contraire, mon frere. I am exactly where I thought I would be when I bought the car two years ago, even anticipating expensive gasoline.”  He then provides a summary of the total cost of driving so as to make an accurate comparison with a modern economy car — a new Toyota Prius. The total cost (purchase price, maintenance, operating) per mile for two years of driving the Cadillac: $0.70/mile. Total cost per mile for two years of the Prius: $1.42/mile… reminds you to remember that three-letter acronym called TCO — Total Cost of Ownership.