Monday, March 26, 2012
Deseret News Hybrid Article
A week after I posted my article discussing the potential saving possibilities of driving a hybrid vehicle, the Deseret News wrote a similar article. Their results are different than mine based on different calculations but I felt the article may be of interest to you. Click HERE to read the article.
Wednesday, March 21, 2012
Going Broke in Order to Have the INTERNET.
I had a conversation the other day with a couple about the iPad. We discussed the Wi-Fi model vs the LTE 4G model. So, which model is better they asked? The answer: This isn't even a competition. The 4G model is hands down the better model. The thing is capable of blazing internet speeds on one of the most amazing devices on the market. So why is every iPad sold not a 4G iPad? I like to call it the Pay for Internet Connectivity Individually on Every Device Everywhere and Go Broke Problem. Let me explain.
Meet Jack and Jill Goodfolk. Jack and Jill have been happily married for 20 years. We can accurately categorize the family as middle class. They have 3 kids: Adam, Jane, and Ashley, ages 11, 13, and 15 respectively. They also love technology and enjoy staying connected. Here is their current set up and what they are paying.
Verizon family plan.
5 lines on the 1,400 minute plan with unlimited text messaging. The minutes and texts plus additional lines per month cost $150. We, however, aren't going to focus on the cost of minutes and texts. We want to focus on data.
Jack, iPhone 4S, $30 for 2GB of data.
Jill, Galaxy Nexus, $30 for 2GB of data.
Adam, iPhone 4, $30 for 2GB of data.
Jane, Samsung Galaxy II, $30 for 2GB of data.
Ashley, iPhone 3GS, $30 for 2GB of data.
Total cost for data connectivity for the family's smartphones: $150.
There is more.
Jack has the new iPad with Verizon LTE, $30 for 2GB of data.
Jill was jealous so she went out and bought herself a new iPad. She wanted to break the Verizon way of doing things and got the AT&T model and is paying $30 for 3GB of data.
The family also has Comcast XFINITY internet at home and they pay $45 a month for it.
Jack also purchased a small condo in sunny St. George 5 years ago and pays $40 a month for internet (part of his HOA fee that was added two years ago).
So how much are the Goodfolk's paying each month JUST IN INTERNET COSTS?
The answer: $295.
I hope this number bothers you. It bothers me. I also don't believe that this number is exaggerated. I think the current model is very pro-Telecom and ISP and very anti-consumer. I think the model is outrageously expensive. Sure you can argue that no one needs internet on all of their devices. I argue this same point, more or less, in a previous post. But we want internet on all of our devices. Our devices are made to use the internet. New infotainment systems in cars are designed to connect to the internet. TVs are now "Smart TVs", designed to connect to the internet. I even saw a Kickstarter project the other day for an internet connected Toothbrush. If you don't think that in the near future that almost everything we use will be connected in some way, you are short-sighted and need to wake up to the Age of Technology. The current model is not conducive to a normal family on a normal budget. Your definition of normal may differ from mine, but most people would agree that paying nearly $300 for internet a month is steep, regardless of income. This is especially true when streaming a HD movie over LTE can eat up your 2GB data allotment in just ONE hour. So not only are you paying a fortune but you are also limited in how you can use your data. The solution is a shared data package that can be used on any device you own at any time in any location. I understand that there may still be a need for data limits until additional spectrum is freed up and infrastructure is built out to support the increasing loads. These limits need to be short term. Shared plans need to be implemented and prices need to be realistic for the consumer. Obama was happy to implement Cash for Clunkers. How about Cash for Connectivity?
Meet Jack and Jill Goodfolk. Jack and Jill have been happily married for 20 years. We can accurately categorize the family as middle class. They have 3 kids: Adam, Jane, and Ashley, ages 11, 13, and 15 respectively. They also love technology and enjoy staying connected. Here is their current set up and what they are paying.
Verizon family plan.
5 lines on the 1,400 minute plan with unlimited text messaging. The minutes and texts plus additional lines per month cost $150. We, however, aren't going to focus on the cost of minutes and texts. We want to focus on data.
Jack, iPhone 4S, $30 for 2GB of data.
Jill, Galaxy Nexus, $30 for 2GB of data.
Adam, iPhone 4, $30 for 2GB of data.
Jane, Samsung Galaxy II, $30 for 2GB of data.
Ashley, iPhone 3GS, $30 for 2GB of data.
Total cost for data connectivity for the family's smartphones: $150.
There is more.
Jack has the new iPad with Verizon LTE, $30 for 2GB of data.
Jill was jealous so she went out and bought herself a new iPad. She wanted to break the Verizon way of doing things and got the AT&T model and is paying $30 for 3GB of data.
The family also has Comcast XFINITY internet at home and they pay $45 a month for it.
Jack also purchased a small condo in sunny St. George 5 years ago and pays $40 a month for internet (part of his HOA fee that was added two years ago).
So how much are the Goodfolk's paying each month JUST IN INTERNET COSTS?
The answer: $295.
I hope this number bothers you. It bothers me. I also don't believe that this number is exaggerated. I think the current model is very pro-Telecom and ISP and very anti-consumer. I think the model is outrageously expensive. Sure you can argue that no one needs internet on all of their devices. I argue this same point, more or less, in a previous post. But we want internet on all of our devices. Our devices are made to use the internet. New infotainment systems in cars are designed to connect to the internet. TVs are now "Smart TVs", designed to connect to the internet. I even saw a Kickstarter project the other day for an internet connected Toothbrush. If you don't think that in the near future that almost everything we use will be connected in some way, you are short-sighted and need to wake up to the Age of Technology. The current model is not conducive to a normal family on a normal budget. Your definition of normal may differ from mine, but most people would agree that paying nearly $300 for internet a month is steep, regardless of income. This is especially true when streaming a HD movie over LTE can eat up your 2GB data allotment in just ONE hour. So not only are you paying a fortune but you are also limited in how you can use your data. The solution is a shared data package that can be used on any device you own at any time in any location. I understand that there may still be a need for data limits until additional spectrum is freed up and infrastructure is built out to support the increasing loads. These limits need to be short term. Shared plans need to be implemented and prices need to be realistic for the consumer. Obama was happy to implement Cash for Clunkers. How about Cash for Connectivity?
Prius C Update #2
$6,995 mark up on a Prius C? What a joke. That's increasing the price of the car by an extra 33%. Sure this dealer is crazy but it also shows how popular this little car already is. Take a look HERE.
Also to note, Toyota is already working on plans to increase production.
Also to note, Toyota is already working on plans to increase production.
Monday, March 19, 2012
Prius C Update
I have a confession to make: I went and test drove the Prius C. The guilt that I was feeling for writing a blog post about the vehicle without ever driving one was too much to handle. Let me be clear: I really hate the styling of the 3rd Gen Prius as well as the Prius V. However, the Prius C is really not bad. It's no looker but it probably won't get you scoffed at. In fact, many less-informed drivers may very well mistake your Prius C as a Toyota Yaris.*
I drove the Prius C for about 5 minutes. Part city, part freeway. The thing is quiet on the city roads, especially on start up. This is, of course, due to the battery technology being utilized under the hood. I didn't feel like the vehicle was uncomfortable on the freeway but it was a far cry from the comfy cruiser that my 13 year old Lexus is. Two years ago I drove my Lexus across the country and was very comfortable. I'm not sure how confident I am that the Prius C could provide a similar comfortable experience. But let's not get sidetracked here; you wouldn't be buying a Prius C for freeway comfort, you'd be buying it to save a load of greenbacks at the pump.
To write a more in depth review, I definitely need more time behind the wheel. I also need to not have a 200 pound sales rep in the passenger seat with me. The Prius was the definition of slow and uninspiring to drive but shedding that extra passenger weight could potentially increase the fun factor by a hair.
I may not end up buying a Prius C but it looks like Toyota is finding plenty of shoppers who will. Click HERE to see how fast these things are selling.
*This is not a confusion you should hope for. The Yaris is the bottom of the totem pole in the Toyota camp.
I drove the Prius C for about 5 minutes. Part city, part freeway. The thing is quiet on the city roads, especially on start up. This is, of course, due to the battery technology being utilized under the hood. I didn't feel like the vehicle was uncomfortable on the freeway but it was a far cry from the comfy cruiser that my 13 year old Lexus is. Two years ago I drove my Lexus across the country and was very comfortable. I'm not sure how confident I am that the Prius C could provide a similar comfortable experience. But let's not get sidetracked here; you wouldn't be buying a Prius C for freeway comfort, you'd be buying it to save a load of greenbacks at the pump.
To write a more in depth review, I definitely need more time behind the wheel. I also need to not have a 200 pound sales rep in the passenger seat with me. The Prius was the definition of slow and uninspiring to drive but shedding that extra passenger weight could potentially increase the fun factor by a hair.
I may not end up buying a Prius C but it looks like Toyota is finding plenty of shoppers who will. Click HERE to see how fast these things are selling.
*This is not a confusion you should hope for. The Yaris is the bottom of the totem pole in the Toyota camp.
Tuesday, March 13, 2012
Fuel Economy: Is a Toyota Prius C worth it?
Gas prices are going up again and the end is not in sight. Gas prices are a mystery, differing from state to state and fluctuating week to week. As one who commutes 50 miles a day, this tends to be something I think about often. I decided to do a little number crunching to see what the cost difference would be between driving my 1999 Lexus GS 300 vs buying a brand new 2012 Toyota Prius C. See the comparison of the two below, compliments of www.fueleconomy.gov.
So here are the numbers I calculated.
The MSRP of a new Prius C Two is $20,000 (including a $660 haggling discount). This is a payment of roughly $400 a month.
Over 5 years that is $24,000.
Fuel for 1 year is $1,150 and 5 years is $5,750.
If the resell value of the vehicle mimics a 5 year old Toyota Prius today, it would sell for somewhere between $12,000-$15,000. Let's go with $14,000.
So, the cost to drive a Prius C for 5 years is $24,000+$5,750-$14,000 = $15,750.
Per year, that is a cost of $3,150.
Per month, that is a cost of $262.50.
Now here is the cost of driving my 1999 Lexus GS 300. My car is paid for so the purchase price is $0.
Fuel for 1 year is $3,050 and 5 years is $15,250.
If the resell value of my vehicle mimics current 18 year old Lexus vehicles, it would be somewhere between $1,000-$2,500. We'll say $1,750.
Now, since the car is coming up on 200,000 miles, we need to factor in repair costs. Over 5 years, I'm estimating $1,300 in repair costs.
So, the cost to drive the Lexus GS 300 for 5 years is $15,250 +$1,300-$1,750=$14,800.
Per year, that is a cost of $2,960.
Per month, that is a cost of $246.66.
The additional cost per month to drive the Prius would be $15.84. I'm surprised at how little of a difference there is between the two choices. $15 is marginal, money spent in a heartbeat at lunch out at Cafe Rio. Now I understand that these numbers are not cold, hard facts. Some of them may be wrong. I didn't do a full, lengthy analysis on this, so I may be missing some other essential elements. I didn't take into account other maintenance costs. Also, if my Lexus were to blow a head gasket, have the transmission go out, or die altogether, then this numbers would also need to be adjusted.
So the question is, do I want to drive a Prius or my Lexus? It should be noted that I have hated the Toyota Prius with so much zeal that it is amazing I actually 1)wrote this post and 2)am even considering the Prius as a car worthy of buying.
If you see errors with my calculations, please let me know in the comments section. Remember, it was my brother who received the Math Sterling Scholar award in high school, not me.
2012 Toyota Prius C
So here are the numbers I calculated.
The MSRP of a new Prius C Two is $20,000 (including a $660 haggling discount). This is a payment of roughly $400 a month.
Over 5 years that is $24,000.
Fuel for 1 year is $1,150 and 5 years is $5,750.
If the resell value of the vehicle mimics a 5 year old Toyota Prius today, it would sell for somewhere between $12,000-$15,000. Let's go with $14,000.
So, the cost to drive a Prius C for 5 years is $24,000+$5,750-$14,000 = $15,750.
Per year, that is a cost of $3,150.
Per month, that is a cost of $262.50.
1999 Lexus GS 300
Now here is the cost of driving my 1999 Lexus GS 300. My car is paid for so the purchase price is $0.
Fuel for 1 year is $3,050 and 5 years is $15,250.
If the resell value of my vehicle mimics current 18 year old Lexus vehicles, it would be somewhere between $1,000-$2,500. We'll say $1,750.
Now, since the car is coming up on 200,000 miles, we need to factor in repair costs. Over 5 years, I'm estimating $1,300 in repair costs.
So, the cost to drive the Lexus GS 300 for 5 years is $15,250 +$1,300-$1,750=$14,800.
Per year, that is a cost of $2,960.
Per month, that is a cost of $246.66.
The additional cost per month to drive the Prius would be $15.84. I'm surprised at how little of a difference there is between the two choices. $15 is marginal, money spent in a heartbeat at lunch out at Cafe Rio. Now I understand that these numbers are not cold, hard facts. Some of them may be wrong. I didn't do a full, lengthy analysis on this, so I may be missing some other essential elements. I didn't take into account other maintenance costs. Also, if my Lexus were to blow a head gasket, have the transmission go out, or die altogether, then this numbers would also need to be adjusted.
So the question is, do I want to drive a Prius or my Lexus? It should be noted that I have hated the Toyota Prius with so much zeal that it is amazing I actually 1)wrote this post and 2)am even considering the Prius as a car worthy of buying.
If you see errors with my calculations, please let me know in the comments section. Remember, it was my brother who received the Math Sterling Scholar award in high school, not me.
Thursday, March 8, 2012
iPad: Which one to buy?
Apple announced the new iPad yesterday. It launches in 8 days and is going to be hot, hot, hot. The biggest questions you face are probably 1)Do I need to upgrade? 2)If I do decide to buy an iPad, which model do I get?
Did I upgrade? Yes
What will I do with my iPad 2? Give it to my dear wife.
Which model did I pre-order? iPad 32GB Black Wifi.
Why? See below.
Size? 32GB. With the iPad 2 I recommended the 16GB to most people. That is going to change. With the introduction of the retina display on the iPad, app sizes will increase across the board, and even more so in graphic intensive apps. Since I've toed the line of running out of space on my iPad 2 since I got it, buying a 32GB model will give me some breathing room and allow me to have additional apps with less concern about running out of space.
Wifi only? Yes. Do I want a 4G LTE iPad? ABSOLUTELY! Does it make sense in terms of a good financial decision? No. The problem I face(the problem all of us connected users are facing) is paying for internet connectivity on all of our devices. I pay for my iPhone data plan, Nikki's iPhone data plan, and internet at home through Comcast. The iPad would be one more. If I were to buy a 4G iPad, I would do one of two things: 1)Not enable the data option on the iPad and thus make it pointless(not entirely, but we won't get into that right now) to have paid a $130 premium for the 4G enabled model or 2)Pay for data and now be paying for internet in 4 different places and creating additional expenses for myself. I should have tethering enabled on my iPhone within a week or so and will use that when I need internet on the iPad.
The new iPad or iPad 2? This, like most gadget purchases, is a combination of financial ability and need.* The iPad 2 is not a bad iPad. I LOVE the iPad 2. The fact that it is a great device today doesn't mean it is a bad, outdated, or unusable device tomorrow. Quite the contrary. At the price point that the iPad 2 will be sold at, it is a very attractive option for many users. Is the new iPad preferable? Of course. The screen will be gorgeous, camera (I've never really used mine) is much improved, and it has faster graphics and increased performance. When you make your decision, decide how frequently you will use the device and how long you plan on keeping it. If you plan on keeping it two years and using it on a daily basis, spend the additional cheddar and get the new iPad.
Here are some great links to some other opinions in the industry:
Marco Arment: Which iPad Should I Get?
The Verge: Verizon or AT&T?
Shawn Blanc: iPad Event
Enjoy!
*Note: I am far from wealthy but I prefer to spend money on technology/electronics rather than other things. Every individual has things that they feel are worthy of their hard earned dollar. For me, this is one of those things.
Did I upgrade? Yes
What will I do with my iPad 2? Give it to my dear wife.
Which model did I pre-order? iPad 32GB Black Wifi.
Why? See below.
Size? 32GB. With the iPad 2 I recommended the 16GB to most people. That is going to change. With the introduction of the retina display on the iPad, app sizes will increase across the board, and even more so in graphic intensive apps. Since I've toed the line of running out of space on my iPad 2 since I got it, buying a 32GB model will give me some breathing room and allow me to have additional apps with less concern about running out of space.
Wifi only? Yes. Do I want a 4G LTE iPad? ABSOLUTELY! Does it make sense in terms of a good financial decision? No. The problem I face(the problem all of us connected users are facing) is paying for internet connectivity on all of our devices. I pay for my iPhone data plan, Nikki's iPhone data plan, and internet at home through Comcast. The iPad would be one more. If I were to buy a 4G iPad, I would do one of two things: 1)Not enable the data option on the iPad and thus make it pointless(not entirely, but we won't get into that right now) to have paid a $130 premium for the 4G enabled model or 2)Pay for data and now be paying for internet in 4 different places and creating additional expenses for myself. I should have tethering enabled on my iPhone within a week or so and will use that when I need internet on the iPad.
The new iPad or iPad 2? This, like most gadget purchases, is a combination of financial ability and need.* The iPad 2 is not a bad iPad. I LOVE the iPad 2. The fact that it is a great device today doesn't mean it is a bad, outdated, or unusable device tomorrow. Quite the contrary. At the price point that the iPad 2 will be sold at, it is a very attractive option for many users. Is the new iPad preferable? Of course. The screen will be gorgeous, camera (I've never really used mine) is much improved, and it has faster graphics and increased performance. When you make your decision, decide how frequently you will use the device and how long you plan on keeping it. If you plan on keeping it two years and using it on a daily basis, spend the additional cheddar and get the new iPad.
Here are some great links to some other opinions in the industry:
Marco Arment: Which iPad Should I Get?
The Verge: Verizon or AT&T?
Shawn Blanc: iPad Event
Enjoy!
*Note: I am far from wealthy but I prefer to spend money on technology/electronics rather than other things. Every individual has things that they feel are worthy of their hard earned dollar. For me, this is one of those things.
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