Miles per pound (mpp)
Discussion
Could be to allow comparisons between the running costs of different fuel types. EVs would have a higher initial price and lower running costs whereas ICE would have lower initial price and higher running costs. Using a standardised comparison would demonstrate what would be better depending on the use case?
I think 10% is a bit of a blunt assumption.
If I leased something pretty vanilla for 400 a month it probably has VED included so fully loaded with insurance perhaps 450.
If I put a tank of petrol in per week I’m way above 10%.
10% on fuel would fit better with high end cars where depreciation is so savage it certainly eclipses fuel costs.
If I leased something pretty vanilla for 400 a month it probably has VED included so fully loaded with insurance perhaps 450.
If I put a tank of petrol in per week I’m way above 10%.
10% on fuel would fit better with high end cars where depreciation is so savage it certainly eclipses fuel costs.
That depends on how you define modern surely? I can imagine with something brand new depreciation is the biggest figure but once the car is a few years old, fuel would be much more than 10% for most.
In the context of a car for sale, I would imagine depreciation is less relevant than the monthly PCP payment(although they are essentially the same). To get to a MPP you would take this amount which has a set number of miles per year, add the cost of fuel for that same mileage based on manufacturers quoted mpg and an average price per litre, add VED, possibly a servicing plan and an MOT if old enough then divide the miles by this value. Seems fairly straightforward to get a comparable figure this way and would allow better judgement than just looking at the headline monthly payment.
In the context of a car for sale, I would imagine depreciation is less relevant than the monthly PCP payment(although they are essentially the same). To get to a MPP you would take this amount which has a set number of miles per year, add the cost of fuel for that same mileage based on manufacturers quoted mpg and an average price per litre, add VED, possibly a servicing plan and an MOT if old enough then divide the miles by this value. Seems fairly straightforward to get a comparable figure this way and would allow better judgement than just looking at the headline monthly payment.
John87 said:
That depends on how you define modern surely? I can imagine with something brand new depreciation is the biggest figure but once the car is a few years old, fuel would be much more than 10% for most.
Over the 16 years I've owned my current car, fuel has made up almost exactly a third of the total cost of ownership. And that's only averaging about 2500 miles a year, I'd imagine that proportion would rise if the mileage was higher. Soloman Dodd said:
Fuel costs only account for about 10% of the total cost of running a modern car.
Depreciation, VED, insurance, servicing and consumables should all count in that figure.
Indeed, and depreciation (or however you determine the financing cost of running a car) is the biggest cost.Depreciation, VED, insurance, servicing and consumables should all count in that figure.
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