Will purchasing a motorcycle actually save me money?

Question

I drive a 2003 Camry with about 35 MPG. I drive about 225 miles a week here in Georgia, which is nothing compared to when I lived in Cincinnati. I'll only be living in my current location for another two years. I know I could definitely use a motorcycle a lot here. I make a lot of short trips, it gets nowhere near as cold here, and there is WAY less precipitation compared to Cincinnati.

Anyway, I considered a scooter or motorcycle to start saving on gas money. I've decided to go with a motorcycle because even though the scooters have better mileage, the cheaper ones aren't exactly highway capable. The higher powered ones end up costing a lot more and I can get a motorcylce that is highway capable for even less.

Of course there is the initial investment cost. I'm shooting for $3000. Then you have insurance, helmet, etc. I also plan to take a class. With double MPG, will I really save money in the long run, especially if I end up not using it as much in two years as I can now

Answer 1

Only if you know how to ride! And if you don't have to transport numerous passengers. And you'll need transportation in rain and snow if you have that in your area.

Answer 2

Umm...how does one get 35 mpg in a 2003 Camry when they are rated 21/29 by the EPA according to 2008 ratings?  Do you never use your A/C?  Do you travel at 45 mph for 40 miles straight??  You must be a hypermiler, otherwise its impossible.

Assuming you drive highway 100% of the time (never stopping or speeding up) I will say you get a very conservative average of 30 mpg.

225 miles a week equals 11,700 miles a year. That equals 390 gallons of gas you use a year, or at $3.80 a gallon, $1482.

For the cost of the bike you could be getting two years free gas for your car.  For that price it is not worth it.

If you are looking at 150cc mopeds, that can go up to 60+ mph (perfect for in town driving) you can buy one for around $1200 brand new.  You won't need insurance having it paid off, and extras maybe $100.  So lets say $1300 for everything.  If you ride half the time on the moped at 80mpg, that would equal to $741 you spend driving in the car and $278 in the moped.  Or $1,019.  You will save $463 a year, or $926 over the 2 years.  So after everything you will be out about $374 if you dont keep the moped.

If you drive more you will pay for the moped, but you wouldnt save money overall.

If gas prices go up (which they are) and you drive the moped more, you will start to see a return on your investment over two years, plus less mileage on your car.

So it depends on how you are gonna drive.  Driving the moped the entire time would cost you $556 a year, saving you $926 in gas.  In which the moped would pay itself off quickly.

Answer 3

probably not for you, sorry...

sell your car, get an insight...

Answer 4

Well, let's run the numbers:

one year of driving your car:

225 miles a week x 52 weeks = 11,700 miles

25 MPG yields 470 gallons of gas used

470 gallons x $4/gal = $1,870 in gas

add $130 in maintenance

total $2,000 not including insurance

one year of driving a motorcycle (assume you will drive it twice as often as your car):

$630 in gas for the car, plus $50 in maintenance = $680

7800 miles for the motorcycle

60 MPG yields 130 gallons of gas used

130 gallons x $4/gal = $520 in gas

add $100 in maintenance = $620

total $1,300 not including insurance

total saved: $700 not including insurance

This doesn't take into account increased insurance for having both your car and your motorcycle under the same policy. Considering that, you're looking at about $500 in savings a year by doing this. If you buy a motorcycle for $3k, it will take you about six years to break even and for the purchase to pay for itself. It will be shorter if you buy a cheaper bike or drive it more often, but this should give you a starting point.

Of course, that doesn't mean it's a bad idea to buy a motorcycle for commuting, it's just not a decision that should be dominated by financial considerations of assumed savings on fuel.