Financial Benefits
Riding a bike to can save lots of money compared to driving a car, van, or, even worse, a truck or SUV. Americans spend more of their disposable income on automobiles than on anything else except food and housing. In 2005, the average price of a used car is estimated at about $13,900, the average price of a new car is estimated at roughly $27,958, including financing charges.
In addition to the purchase price of a car, car buyers have to pay taxes, insurance, license fees and tags (plus any other yearly vehicle taxes), and annual financial charges. According to AAA, overall average cost of owning and operating a passenger vehicle is $7,834 per year in 2006, based on 15,000 miles of driving. This cost includes a list of factors, including fuel, maintenance, tires, depreciation (which is calculated as $40.5 cents a mile by the IRS), and insurance. Not owning a car can save $652.00 a month. And, according to the League of American Bicyclists, the cost of operating a bicycle for a year is only $120.
And these calculations do not reflect today's current price of gasoline. In 2007, the nominal price for crude oil reached its highest level ever. As a consequence, nominal gasoline prices have reached historic highs in recent years and are expected to set new record highs this coming year. According to the Energy Information Administration (EIA), in January 2008 nationwide average price of gasoline is $3.06 per gallon and $3.32 per gallon.
Even if one does own car, bicycling on every occasion possible can lower every-day wear-and-tear on a vehicle and save money on direct expenses, such as gas and oil, maintenance and repairs, tire wear, and parking fees (i.e. - 2,800 bikes will fit on the same land as 100 cars). In addition, riding a bike allows one to avoid traffic (particularly in urban areas), thus saving time when running errands or commuting to work.