This relates to how we approach car ownership: CapEx vs. OpEx: Key Differences Explained ... needs that are categorized as capital expenditures (CapEx) or operating expenses (OpEx). CapEx involves major, long-term purchases like buildings and equipment. OpEx, however, covers routine, day-to-day expenses like salaries and rent. Understanding the distinctions can clarify their financial impacts and tax treatments. KEY TAKEAWAYS Capital expenditures are a company’s major, long-term expenses while operating expenses are a company’s day-to-day expenses. Examples of CapEx include physical assets, such as buildings, equipment, machinery, and vehicles. Examples of OpEx include employee salaries, rent, utilities, and property taxes. Items covered by OpEx often have a useful life of one year or less, while CapEx tends to pay for a benefit to the company for longer than one year. Capital expenditures are treated differently from operating expenses when it comes to tax implications. While operating expenses are typically deductible for tax purposes, capital expenditures must be capitalized and depreciated over time. Some cite the purchase price of a vehicle to claim "it is an expensive car." Correct AT THE TIME OF CAPITAL PURCHASE, after purchase, this capital investment depreciates, it ages until "end of life." For example my Tesla purchase March 26, 2019: $42,000 including options, net $22,000 discounted by rade-in or salvage value of 2017 Prius Prime at "end of life" Edmunds estimated value: Is this an "expensive" car on January 16, 2026? Operational cost 4.5 miles/kWh Solar roof cost, $0,00/kWh 14.1 kWh/day or 14.1 * 4.5 = 63.45 miles per day free Utility company cost: ~$0.12/kWh Estimated excess of 63 miles per day - (7 / 4.5) * 0.12 = $0.002 per day SuperCharger costs ~$0.28/kWh Out of town day trip ~500 miles: 11.07+6.10+10.03+7.83+6.51 = $41.54 Total for 500 miles + (15 * 70) = 1,550 miles or $0.027/mile The most generous offer, $5,000, does not strike me as being "an expensive car." But at less than $0.03/mile, it is affordable to drive when and where I want. So let's compare it with my past Prius performance, 56 MPG at the towest price seen, $2.50/gal: 1,550 mi / 56 MPG = 27.679 gal or $69.20 gasoline costs (assumed lowest which is higher than local) ($41.54 - $69.8) / $69.20 = -40.8% cheaper So my six year old Tesla is not only cheaper than any new car, it is 40% cheaper to operate than my last Prius. Yes that car was a 2017 Prime but the limited EV range, ~25 miles, and too easily tripped into gas mode made it a 56 MPG car. Bob Wilson
'statistically cheaper.' Just remember....somebody whose feet are frozen and whose head is burning is.....'statistically comfortable.'
I wonder at what point we look at these LED light bulbs and start saying light bulbs are CapEx. I used to change light bulbs when they burned out. Lately, I've been changing them because better ones have come out (higher CRI or some other feature I want) and I take the old ones to the Habitat Re*Store with probably a dozen years left on them. I recently put some new ones in as pulpit and altar spots at the church down the street. They are rated 22.8 years at an estimated 3 hours of use per day. I estimate closer to 3 hours of use per Sunday. If the math holds, the building could be more than twice its current age when they need replacement next. ... which is ok with me, 'cause it means someone else will be changing them, and those fixtures are just accessible by reaching back over the shoulder while teetering on a 12-foot stepladder. And those fixtures use the GU10 bi-pin twist base. So it's not just teeter on the stepladder and reach back over your shoulder and twist on an Edison base till it's tight. No, it's reach back over your shoulder and fiddle with the bulb until you can finally line the pins up with the holes you can't see, then push, then twist.
"Just remember....somebody whose feet are frozen and whose head is burning is.....'statistically comfortable.' " Just remember ... people who make silly statements about statistics may be attempting to impugn this field of mathematics.
I prefer to believe my lying eyes. Like my DI said, “A grain of observation out weights 10 pounds of bovine fecal matter.” Bob Wilson
Ah yes..... because 'statistics' and 'math' are the SAME THING. I see..... I guess all that...um...'crap' they told me about statistics being an applied $cience dealing with things data variability, uncertainty and inductive reasoning was the bovine extract? Statistics isn't entirely a branch of math since it includes study design, interpretation, and philosophy..... Admittedly this is probably deserving of a proper thread, instead an implement in a fish slapping contest - but "statistically" is a punch line for a REASON.
