Numeracy vs "fashion statement"
#1
05-26-2007, 05:44 AM
Join Date: Oct 2005
Location: Huntsville, AL
Posts: 5,613
Numeracy vs "fashion statement"
ttp://www.nytimes.com/2007/05/26/business/26small.html?_r=1&oref=slogin
The fashion statements are sitting in the driveway.
Numeracy is the ability to think with numbers. Unfortunately, Jesse joins CNW Marketing in substituting vague 'psychological' and 'style' reasons when buyers do something their model can't handle. CNW Marketing simply fabricated 'Unsinkable Titanic' numbers as if that would work.
What sort of "marketing" firm continues to predict a different future from what the customers are doing?
Bob Wilson
. . .
“Small cars are like a fashion statement,” said Art Spinella, president of CNW Marketing.
For three small cars — the Toyota Prius and Corolla and the Honda Civic — more than 500,000 were sold last year as second or third cars in a household, CNW data shows.
Ken Collinsworth, 53, bought a Toyota Yaris last month for his daughter to take to college this fall. But with gas close to $4 a gallon near his home in Paso Robles, Calif., Mr. Collinsworth has been driving the Yaris instead of his BMW X5 sport utility and GMC Sierra pickup.
. . .
“Small cars are like a fashion statement,” said Art Spinella, president of CNW Marketing.
For three small cars — the Toyota Prius and Corolla and the Honda Civic — more than 500,000 were sold last year as second or third cars in a household, CNW data shows.
Ken Collinsworth, 53, bought a Toyota Yaris last month for his daughter to take to college this fall. But with gas close to $4 a gallon near his home in Paso Robles, Calif., Mr. Collinsworth has been driving the Yaris instead of his BMW X5 sport utility and GMC Sierra pickup.
. . .
. . .
Americans have spent $20 billion more on gasoline so far this year compared with 2006, according to a recent report by the Government Accountability Office. That works out to about $146 a person, a fraction of what a new car costs.
“From a dollars-and-cents point of view, it doesn’t make sense,” said Jesse Toprak, director of industry analysis for Edmunds.com, a Web site that offers car-buying advice. “There’s no way you’re going to drive it enough to justify the purchase, so it’s more of a psychological decision.”
. . .
Americans have spent $20 billion more on gasoline so far this year compared with 2006, according to a recent report by the Government Accountability Office. That works out to about $146 a person, a fraction of what a new car costs.
“From a dollars-and-cents point of view, it doesn’t make sense,” said Jesse Toprak, director of industry analysis for Edmunds.com, a Web site that offers car-buying advice. “There’s no way you’re going to drive it enough to justify the purchase, so it’s more of a psychological decision.”
. . .
What sort of "marketing" firm continues to predict a different future from what the customers are doing?
Bob Wilson
#2
05-26-2007, 08:30 AM
Re: Numeracy vs "fashion statement"
My "fashion statement" has 14,800 miles on it - in just under 10 months 
(Art just continues to "Spin".)
Using the GAO figures to somehow "justify" keeping your current vehicle, instead of getting a more fuel-efficient one, is ludicrous. And VERY misleading. I wouldn't RUSH to the dealership and trade in a nearly new gas-guzzler just yet based only on gas prices (but it's getting close!), but if you're in the market, you SHOULD be putting fuel economy high on the priority list. To do otherwise is "fuelish."
Plus, using the GAO numbers - they are stating that it "only" costs $146 (for 4 or 5 months BTW) MORE for gas this year vs. last year. It does not mention how much it cost (total) for gas last year.
Consider my situation last year: 18K miles a year, 18 MPG, premium-required. Let's use $2/gallon average (and not even consider the additional costs of premium vs regular). That car used about 1000 gallons of gas a year.
$2000 in a year, $1000 for 6 months, $667 for 4 months.
At $2.50 a gallon average THIS year for gas, the additional cost for 4 months would be about $167 (50 cents more a gallon X 333 gallons).
HCH2: 18K miles a year, 46 MPG, regular. This car uses about 390 gallons of gas a year.
$780 in a year, $390 for 6 months, $260 for 4 months.
At $2.50 a gallon average THIS year for gas, the additional cost for 4 months would be about $65 (50 cents more X 130 gallons).
Spending $2000 in gas last year, and tacking on "only" $167 ADDITIONAL so far this year hardly justifies NOT CONSIDERING an upgrade.
My HCH2 instead would've cost $780 last year, and tacked on "only" $65 ADDITIONAL so far this year.
Last year's savings would've been $1220, and this year's saving (projected at only $2.50 a gallon!) would be $1525 ($2500 - $975).
If, NEXT year gas prices stabilize at $3 a gallon, the savings would be $1830 ($3000 - $1170).
If, gas prices stabilize at $4 a gallon, the savings would be $2440 ($4000 - $1560).
Add numbers like THAT up for 4 or 5 years of use, and tell me what makes financial sense.
Put another way - and taking premium vs. regular into the calculations:
I've used about 320 gallons of gas so far in my HCH2 (14,800 miles in just under 10 months). My prior vehicle would've used about 822 gallons (being optimistic about the MPG at 18) over the same time-period. Plus, it required Premium.
The Civic Hybrid has saved 502 gallons (in just under 10 months! That's 602 a year!). At a $2.50 average per gallon, that works out to $1255. Now tack on the 25 cent surcharge (at least) for a premium gallon, and that's another $125.50, making the total saved = $1380.50. That's about $1657 per year. If gas prices STAY at the current $3/gallon, that's $1988 per year. (Or $166 a month of my car payment
)
There's some numeracy (and real-world numbers) for 'ya.
(Art just continues to "Spin".)Using the GAO figures to somehow "justify" keeping your current vehicle, instead of getting a more fuel-efficient one, is ludicrous. And VERY misleading. I wouldn't RUSH to the dealership and trade in a nearly new gas-guzzler just yet based only on gas prices (but it's getting close!), but if you're in the market, you SHOULD be putting fuel economy high on the priority list. To do otherwise is "fuelish."
Plus, using the GAO numbers - they are stating that it "only" costs $146 (for 4 or 5 months BTW) MORE for gas this year vs. last year. It does not mention how much it cost (total) for gas last year.
Consider my situation last year: 18K miles a year, 18 MPG, premium-required. Let's use $2/gallon average (and not even consider the additional costs of premium vs regular). That car used about 1000 gallons of gas a year.
$2000 in a year, $1000 for 6 months, $667 for 4 months.
At $2.50 a gallon average THIS year for gas, the additional cost for 4 months would be about $167 (50 cents more a gallon X 333 gallons).
HCH2: 18K miles a year, 46 MPG, regular. This car uses about 390 gallons of gas a year.
$780 in a year, $390 for 6 months, $260 for 4 months.
At $2.50 a gallon average THIS year for gas, the additional cost for 4 months would be about $65 (50 cents more X 130 gallons).
Spending $2000 in gas last year, and tacking on "only" $167 ADDITIONAL so far this year hardly justifies NOT CONSIDERING an upgrade.
My HCH2 instead would've cost $780 last year, and tacked on "only" $65 ADDITIONAL so far this year.
Last year's savings would've been $1220, and this year's saving (projected at only $2.50 a gallon!) would be $1525 ($2500 - $975).
If, NEXT year gas prices stabilize at $3 a gallon, the savings would be $1830 ($3000 - $1170).
If, gas prices stabilize at $4 a gallon, the savings would be $2440 ($4000 - $1560).
Add numbers like THAT up for 4 or 5 years of use, and tell me what makes financial sense.
Put another way - and taking premium vs. regular into the calculations:
I've used about 320 gallons of gas so far in my HCH2 (14,800 miles in just under 10 months). My prior vehicle would've used about 822 gallons (being optimistic about the MPG at 18) over the same time-period. Plus, it required Premium.
The Civic Hybrid has saved 502 gallons (in just under 10 months! That's 602 a year!). At a $2.50 average per gallon, that works out to $1255. Now tack on the 25 cent surcharge (at least) for a premium gallon, and that's another $125.50, making the total saved = $1380.50. That's about $1657 per year. If gas prices STAY at the current $3/gallon, that's $1988 per year. (Or $166 a month of my car payment
)There's some numeracy (and real-world numbers) for 'ya.
#3
05-26-2007, 08:52 AM
Re: Numeracy vs "fashion statement"
The auto fashion police should have arrested me - my Insight turns 7 this September - currently has 120,000 miles....oh - it's basically an extreme makover of the 80's CRX HF.
Small cars may be more than fashionable in NYC - but law. The London Congestion charge might be implemented in The Big Apple.
Small cars may be more than fashionable in NYC - but law. The London Congestion charge might be implemented in The Big Apple.
#4
05-26-2007, 02:13 PM
Re: Numeracy vs "fashion statement"
Of course, the two statements are not mutually exclusive. The latest crop of B-cars are both efficient AMD fashionable. I guess that's why they're SELLING while Ford/GM sales are dropping as fast as a meteorite.
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