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by mwint 1430 days ago
Where'd this $5000/car(/yr?) number come from? Total cost of ownership for a car is far less than that. You can only really get to $5k/year through very high depreciation, and people buying those kinds of cars won't be riding your busses anyway.

Also, $100/hr to run a bus is probably a fine operating cost number, but you do have to buy the bus (capitalized cost) and take the depreciation hit just like cars.

3 comments

The total cost of ownership includes gasoline, repairs, insurance, road tax as well as depreciation. The $100 per hour includes the cost of buying the bus.
Look at [1] and you see it's the average across the US. It's more expensive than that in many states. Unless you're discounting the purchase price/monthly loan payment/lease price.

[1]: https://www.move.org/average-cost-owning-a-car/#data

Key word there is probably average. Median would be more interesting.
New Mexico is sitting at the median (spot 25, so not quite, need to average out the two middles) at $5,063.78.
The median of a list of averages is not the median of the population.
I don't think I've paid (the equivalent of) $5000 for every car I've ever owned, in total.