eGo economics - or, should J stop worrying and learn to love the eGo?
I was facetiously suggesting this evening that I buy an eGo for J, given that I've had such a good time riding mine, and that we've found ourselves in several situations lately where she was driving a car to meet me someplace, or returning from someplace, while I was riding my eGo.
Given that I bought at the pre-$999 price point and got a rebate I haven't spent yet, I could make the eGo-for-J quite a bit cheaper, especially if I can compound that discount with my hopefully soon-to-arrive evangelist program discounts.
Intrigued by the idea, I sat down to figure out what the base costs would be. I was thinking maybe I'd split the cost with her, since it'd be more fun for me, and I have a significantly larger disposable income. In the midst of my musings, J pointed out that there was another option I hadn't been accounting for - with an eGo, she could sell her car. Woah. That changes everything.
I quickly drew up a spreadsheet. I calculated the cost of the eGo, with the accessories she'd probably want, and minus my expected discounts. Throw in a helmet, shipping and registration. That brings the eGo to around $1000 again (they gave me a pretty hefty rebate for buying so close to the price drop...).
Then, we looked at the blue book for her car, and her car payments. Looks like she just recently passed the point where the car's worth more than she has left on the loan. That's good news. And that's before we actually sell it (well, ok, it could sell for less, given the market conditions around here, so that's iffy). Of course, the number I used for her outstanding loan is the sum of her remaining payments, not that actual balance of the debt. It should cost somewhat less to buy out the loan than that.
Delving a little deeper, I threw in the cost of insurance (about $80/mo less for just motorcycle insurance than for car insurance), the amount she spends on gas (she, like I, would not pay any increased utility costs for charging the eGo), and her parking permit.
Turns out, if she can live life with the eGo, and only occasionally rent a car (say, 8-10 days a year), she'll come out about $3000 ahead the first year. Since she's got 2 more years, at least, in her program, this is not unrealistic. Living on campus has its advantages, and Stanford has lots of ways of supplementing transit because of the low amount of parking on campus. Heck, if she moves off campus, she can start collecting another $160 or so as an incentive Stanford offers to those who don't need a permit on campus. If she manages with the eGo for two years, she's saved well enough to make the difference between buying a new car and a used one at the end of her program. Pretty incredible.
Now, why is this all so possible? Basically, I think, as a grad student living on campus, a car isn't a very good deal. So, a reasonably solid car-substitute-only-cheaper is. Now that J is over 25, renting a car is also fairly cheap, and there are at least a half dozen rental places within the eGo's operating range, making it pretty compatible with occasional jaunts of larger distances. Having a boyfriend who is keeping his car helps, too, for socializing and whatnot. Goodness knows the mass transit in the peninsula isn't sufficient.
She's going to make the decision soon, but I think we'll soon see how J stopped worrying and learned to love her eGo.