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Penny Wise Gallons Foolish

By
Services for Real Estate Pros with The Real Estate Investment Institute 1retiredsage

Brenda and I were out exploring today as we usually do on weekends. We'd taken her car as opposed to my SUV because for local driving we can plan on 20 MPG as apposed to 15 MPG. There is another reason, by Sundays Brenda's car need filed up for the next week and I'd rather do it for her.

We were about 10 miles north of home when we stopped for our usual 12 gallons of gas. It's notable only because our normal station near home was at $2.519 / Gal, and this one was only $2.429 / Gal. Brenda mentioned we'd have to remember this station.

We've all felt like that buy gas at the lowest possible price! It makes a lot of sense and saves a lot of cents if! If the low priced gas is on your way to where you were going anyway!

But, at today's prices just how far can you go for a bargain? Filling our car averages about 12 gallons a week. My SUV averages 18 gallons a fill up, but I only fill it every 6 weeks or so, one of the advantages of working from home and not far far from the airport.

To fill up the car at $2.52 / Gal takes $30.24 or about $0.13 / mile.

To fill up the SUV at $2.52 / Gal takes $45.36 or about $0.17 / mile.

We could get a powered enclosed roller skate that gets 30 / MPG. And takes the same 12 gallons to fill up. At $2.52 that's $30.24 or about $0.08 / mile.

So how far can we go to save $0.09 / gallon?

With our car, buying 12 gallons we break even at 8.3 miles round trip or 4.15 miles one way! Any closer and we might save money any further it will cost us money.

With our SUV, buying 18 gallons we break even at 9.5 miles round trip or 4.75 miles one way! Any closer and we might save money any further it will cost us money.

With a new powered tin can buying 12 gallons we break even at 13.5 miles round trip or 6.75 miles one way! Any closer and we might save money any further it will cost us money.

Of course that's just to break even! What about a more common $0.01 / gallon savings?

Our car 0.46 miles, to break even on a penny savings / gallon.

Our SUV 0.53 miles to break even on a penny savings / gallon.

Penny Wise Gallons Foolish. A new skate board 0.75 miles to break even on a penny savings / gallon.

The reality is that unless "cheap" (cheaper) gas is on your normal route of travel you can't afford to do much more than cross the street to save money.

 

After thoughts:

Why keep a 15 MPH SUV? I'm comfortable in it! It rides better in town or on bad roads. It sits 5 full size adults! It halls every thing I'm capable of loading! It jumps to 22 MPH on the highway. The SUV weighs 4,200 lbs. In a collision the SUV wins more often that cars. The SUV can tow a trailer. I like stuff! If there is less than 6 going we can all ride together. I can see over most traffic! I can be seen by every body! The SUV horn commands attention!

Penny Wise Gallons Foolish

Honking at slow trafic.

The car holds 2 adults and two small people. The car is full with a weeks groceries, if there's no holiday that week. The car gets 27 MPH on the highway, but is extremely tiring. The car weighs just under 2,000 lbs. The car has no room for stuff! If there are more than 2 adults going we need 2 cars. The car can be as hard to see as to see from. I never look at who I honk at, it's embarrassing to peep!

 Penny Wise Gallons Foolish

Death Vally.

 Penny Wise Gallons Foolish           Penny Wise Gallons Foolish

I fit! It can tow.

 

Posted by

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org      Cell 832-259-7078,      Houston 832-582-8415,       Las vegas 702-516-1569

     http://www.reii.org  Back Cover One House At A Time http:www//reii.orghttp://www.flippingforfunandprofit.info/ http://www.billarchambault.com   

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

http://www.reii.org

©William J Archambault Jr   ©The Real Estate Investment Institute   ©REII

Comments(20)

Suzanne McLaughlin
Sabinske & Associates, Inc. (Albertville, St. Michael) - Saint Michael, MN
Sabinske & Associates, Realtor

That was fun!  I think I am past my skateboard years.  And, I went to fill up the tank on the van yesterday, and more was going on the ground than in the tank.  I stopped at $1.57 thankfully after noticing my shoes were getting wet.  More expenses.  Ah, well.

I enjoyed your post. 

Aug 22, 2010 01:39 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Bill, we have not seen gas in the $2.50 range for months.  Our gas is in the $2.90 range, so I gas up at a station either close to work or one close to home.  It is two expensive to drive more than a few miles looking for a bargain.

Aug 22, 2010 02:14 PM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Susan,

On tour shoes? O"my! That's why I like to take care of Brenda's.

Bill

Aug 22, 2010 02:28 PM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

George,

We've got allot of gas locally, it could be the ethnic food. What ever, $2 anything is  dollar and a half to high!

Bill

Aug 22, 2010 02:32 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Bill I agree :)

Aug 22, 2010 02:51 PM
Lane Bailey
Century 21 Results Realty - Suwanee, GA
Realtor & Car Guy

My truck holds 38 gallons... a normal fill-up for me is about 35 gallons.  A few cents can make a pretty big difference.  I see diesel ranging by a quarter of more per gallon...  Saving $10 on a tank is real. 

Aug 22, 2010 02:52 PM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Lane,

Buying more gallons you can go further and still save money! But, even you can only go so far before it cost you more to pay less!

Lane, one of these days you're going to have to explain what "car guy" is about.Please.   8>)

Bill

Aug 22, 2010 03:00 PM
Broker Nick
South Florida Real Estate & Development, Inc. - Coconut Creek, FL
Broker Nick Relocation Broker Service

How about getting a horse - I think hay is becoming cheaper now - and it is just fun to take buyers out on a horse?

Aug 22, 2010 03:05 PM
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

I never go out of my way as there is a gas station near my house and I analyzed (years ago) how many miles per gallon I got from their gas vs the cheapies.  I got 2-5 MPG more than any place else I filled up.  I asked the owner if I was smoking crack and he explained the reason why and it made sense so I fill up there.  Luckily it is the closest gas station to my house :)

Aug 22, 2010 04:30 PM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Nicholas,

Brenda and I are both horse people. But, horses are a life style, I'm not ready for.

Bill

Aug 22, 2010 10:52 PM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Renee,

In Las Vegas all gas comes out of the same tank.

Bill

Aug 22, 2010 10:54 PM
Loreena and Michael Yeo
3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX
Real Estate Agents

Bill - Do you go through so much "analysis" with decisions you make? I think it's a great thought-process though. More people should be conscious about little small decisions we make.

The same with supermarket ads. They always have 2 or 3 extra low/ cheap items, but the rest is their normal prices. Then, across town, there's another 2 or 3 items on bargains. It would be foolish to spend the time, energy and gas money to drive all over town to get those bargain prices. That's why I always just end up in Walmart. Overall, they are the best.

Aug 22, 2010 11:49 PM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Loreena,

I wrote about decision making 3 and 1/2 years ago see: Tribute To A Lady / Decision Making !

I do analyze everything, but I've been blessed I see numbers. More specifically I see the relationships between numbers. I use to be faster than my calculators, but when Eric learned to install a battery that ended that.

On the other hand my spelling is atrocious!

Brenda clips coupons the ones that come in Friday's mail but then we go to Kroger because it's not far and all the clerks speak English.

Bill

Aug 23, 2010 12:42 AM
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

You are the numbers guy around here, for sure.

Personally, my ideal transportation (usually only works in the snow) is a garbage bag over my body ... using my carcass as a sled.  And my chin works well as a break.  Cheapest gas I've known, even after a Cabbage & Noodle dinner.

I like the pics here.  I'd love to see more of that in your posts, my friend.

Aug 23, 2010 02:34 AM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Jason,

Cabbage & Noodle that could cause enough gas to get you across town! You could keep a cooler of hard boiled eggs and beer to refuel from. Maybe you should rethink the garbage bag to use as a collection system.

A flatulent mobile?

Bill

Aug 23, 2010 03:19 AM
Broker Nick
South Florida Real Estate & Development, Inc. - Coconut Creek, FL
Broker Nick Relocation Broker Service

I am so confused - too many numbers - so little time! I stop at the nearest to my home which happens to be a HESS Station and it always is about ten cents cheaper than all the rest - I am blessed...

Aug 23, 2010 04:24 AM
Broker Nick
South Florida Real Estate & Development, Inc. - Coconut Creek, FL
Broker Nick Relocation Broker Service

 

Congratulations this post is now featured in the Silent Majority Group of Active Rain.

Aug 23, 2010 04:25 AM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Nicholas,

We have a Kroger station and since Kroger is our grocer it discounts gas $0.10 / gallon, but it's 10 miles away even if we totally empty and took 14 gallons that's only a $1.40 savings, it takes a full gallon to get there and back, so to save 10 cents / gallon we lose a $1.00>

Thanks for the Feature I'm honored.

Bill

Aug 23, 2010 04:37 AM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

I'm keeping my SUV also for towing and hauling around all the sports equipment. Can't fit everyone inside my wife's car and still get the baseball / softball equipment in the back... Just isn't going to happen!

Aug 24, 2010 05:50 AM
Brenda Archambault
The Real Estate Investment Institute - Houston, TX

Hon, the problem I have is if you have an intersection  with multiple stations one is always $.05 or more cents higher yet they still get business, why not just drive through the light and save those few  cents?

Aug 24, 2010 02:40 PM