Switching from driving a car to cycling for school drop-offs can have numerous benefits, both for your wallet and the environment. This calculator helps you compare the cost of using a car versus a bike for these trips, factoring in elements such as car depreciation, fuel expenses, and environmental impact.
By inputting details like car purchase price, monthly payments, and commute distances, you can see how much you could save by opting for a bike instead of your car. It may help you change your car for a cheaper car or become a one-car family. This would enable you to channel the money into more rewarding life experiences or endeavours.
Car vs Bike School Drop-off Calculator
Note: Uses the following depreciation metrics based upon industry standard (average).
Year 1: 20%
Year 2: 18%
Year 3: 15%
Year 4: 13%
Year 5: 10%
Year 6: 8%
Year 7: 7%
Year 8: 6%
Year 9: 5%
Year 10: 4%
FAQ:
1. How does the calculator estimate the financial savings of cycling instead of driving?
The calculator takes into account the car’s purchase price, deposit, monthly payments, and the duration of the payment period. By comparing these costs with the virtually zero ongoing cost of using a bike, it provides an estimate of the annual savings. It also includes depreciation, which reflects how much the value of the car decreases over time—a significant cost factor in car ownership.
2. What is depreciation, and how is it calculated in this tool?
Depreciation is the reduction in value of an asset over time, in this case, your car. The calculator uses standard UK industry depreciation rates to estimate how much your car’s value will decrease each year. For example, a new car typically loses 20% of its value in the first year, with the rate decreasing in subsequent years.
3. Why is cycling more economical than driving for school drop-offs?
Cycling eliminates many of the costs associated with car ownership, such as fuel, insurance, maintenance, and depreciation. While buying a bike also involves an initial cost, the ongoing expenses are minimal compared to a car. The calculator allows you to see the difference these reduced expenses can make over time.
4. How does the calculator determine the CO2 emissions saved?
The calculator estimates CO2 emissions based on the distance you would drive and the average emissions per mile for a typical car. By cycling instead, these emissions are avoided, which not only saves money but also contributes positively to the environment. The results show how much CO2 you’re not emitting by using a bike, which can be a motivating factor for environmentally-conscious families.
5. What are some other benefits of cycling not shown in the financial calculations?
Aside from the financial and environmental savings, cycling also offers health benefits for both parents and children. It encourages physical activity, which can lead to improved mental and physical health. Additionally, cycling can reduce stress compared to being stuck in traffic, and it provides an opportunity for quality time with your child.