Essay on Cost Analysis

Submitted By PakStephanie
Words: 310
Pages: 2

COST ANALYSIS
Georgie, Julia, Stephanie
Driving v. Public Transportation
For the purposes of our analysis we will be using current market rates with: Surrey gas prices are at an average of 122.9 ¢/litre, a three zone monthly transit pass is $170, an average new vehicle at $32,086, and basic car insurance at a rate of $1,544 annually. We will be comparing the price of an average car, insurance, and gas prices for one year as opposed to the cost of public transportation. Public transportation for one year would be $2040.
Let's assume the 'average' person drives 30 km round trip to work each day, and another 20 km for errands, etc. 30 x 5 = 150 miles for work + 20 x 7 = 290 km (avg) per week. If we figure the 'average' car gets 38 km/litre, then divide 38 into 290, which = 7.63 litres of fuel each week. Multiply 7.63 x 52
(weeks) and that equals roughly 396.8 litres. This would equate to a conservative $483.12/year +
$1,544 (insurance) + $32,086 (car) = $34,727.12 per year. However if you already own a car your cost per year will be $2027.12 making it more economical than public transit. This is not including other variables including convenience and or any necessary car repairs.
So as said previously the average cost to purchase a regular gas fueled vehicle with insurance and gas for an entire year would be approximately
$34,727.12 per year. A hybrid car costs on average
$23,015. The basic car insurance for a hybrid would cost the same amount as a regular gasoline car at a…