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Old 06-23-2013, 07:15 AM
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Richard Martin Richard Martin is online now
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Join Date: Mar 2000
Location: Greenville, NC
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Quote:
Originally Posted by mrlpg View Post
Ed is all over it. If you could cut your operating expenses up to 30%, why wouldn't you?
You have to do a cost versus benefit analysis.

I recently upgraded my 1995 F150 to a 2007 Chevy 1500. The old truck was getting about 9.5 MPG (city/highway towing a 4,000 pound trailer) and the new truck gets 13 MPG. That's a decrease of 27% in fuel costs. In 100,000 miles (the total distance I drove in the old truck) I spent about $36k in fuel at $3.50 per gallon. The new truck will spend about $25k at $3.50 a gallon. That's a savings of $11,000 over the "life" of the truck.

That is the Benefit portion.

Now for the Cost portion.

The new truck cost $12k. After the fuel savings are deducted the new truck will cost me $1,000.

This analysis could get a whole lot more in detail if I were to factor in expected repair costs of a truck with 150,000 miles on it versus a truck with only 60,000 miles on it. I could also factor in the actual cost of fuel over times versus using an average price. But since price inflation has become a normal part of our economy, it would actually work in favor of dollars saved with the new truck.

Attempting to recapture the costs of a propane upgrade to a mower or even a truck will be difficult. A through analysis should be done first.
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