• A Two-Wheeled Hedge Against Inflation

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    by Eric Peters: Signs
    That Car You're Looking At Might Be aClunker



    Ho ho ho. Your
    Christmas present from Ben Bernanke — $3 per gallon gas — is coming
    a couple of weeks early. “Qualitative Easing” — printing money,
    lots and lots of it — is beginning to show itself in the form of
    less buying power for the money you’ve got right now. Gas hasn’t
    really gotten more expensive; your dollahs have simply been

    But there’s
    something you can do, for once. And it’s something good, too.

    If you’ve ever
    wanted to get a motorcycle, here’s your excuse.

    — even the big/fast ones — get as good or even better mileage than
    a hybrid car. Some of the smaller ones can deliver 60–70 MPGs. They
    also cost much less to buy (and maintain) than a hybrid — or can,
    at any rate.

    I’ve got several
    bikes and been a rider for years, almost entirely for pleasure.
    But now it’s becoming a great way to hedge against inflation. The
    recent upsurge in the cost of fuel gave me just the push I needed
    to make what I think is a savvy investment — a new (to me) motorcycle.

    Here’s the

    My everyday
    driver is a Nissan compact pick-up. Even though it has a four-cylinder
    engine and a manual transmission, it averages high teens/low twenties.
    If gas goes up to $4 per gallon again, it will cost me appx. $60
    to fill the truck’s 15 gallon tank — which will take me maybe 250–300
    miles, assuming an average 20 MPGs.

    If gas goes
    up to $5 or $6 per gallon — and with the printing presses running
    24-hour shifts, that is not an unlikely scenario — filling up Buttercup
    (my wife’s name for our truck) will be our new Mini-Me Mortgage

    I had this
    prospect rattling around in my head when, while surfing the classifieds
    online, I came across a very nice, low mileage used touring/cruising
    bike. I have always wanted one of these, not just because I own
    or have owned every other type of bike — but because all my other
    bikes (sport bikes, antique bikes, dirt bikes) are not the hot ticket
    for long-haul trips. The other bikes I have are either not comfortable
    for long-haul rides (sport bike) too nice to risk being rained on
    (restored antique bike) or just too small for the highway (dirt/dual-sport
    bike). Also none of them can carry more than me and my wallet. But
    I had restrained myself before — because adding another bike to
    my growing ensemble seemed like a sure-fire way to annoy my wife.
    Which anyone who is married knows is not sound policy.

    But now I had
    an excuse. A legitimate, responsible reason for buying
    this bike.

    The ’80s-era
    Honda Silverwing (a slightly smaller version of the better-known
    and still-being-made Goldwing) only cost me $2,000 — which is not
    unusual for an older Japanese-brand bike, even if it’s in excellent
    condition. Nice used bikes — ready to ride, with no Big Ticket problems
    — are readily available in the $2,000–$5,000 price range. By car
    standards, that is chump change. But even better than the affordable
    cost of entry, the ‘Wing gets 45 MPGs. Its 4.5 something-gallon
    tank only costs about $12 to fill up at current prices.

    If the price
    of gas doubles, riding this bike rather than driving my
    truck will keep my effective gas costs about the same as they are
    at current prices. That will amortize the $2,000 cost of the bike
    in a matter of months — and after that, it’s gravy.

    This bike is
    a fully-faired road trip bike, with a large windscreen to protect
    the rider and multiple storage cases that can carry enough stuff
    to comfortably take you 1,000 miles down the road — or take home
    groceries from the store. It even has a stereo, if you’re
    into such things. The point being, it is a bike that could sub in
    for a car (or truck) as an almost everyday vehicle. So long as it’s
    not snowing, you can ride. If it does snow — or you need to cart
    home some 2x4s — you can fall back on your four-wheeled conveyance.

    But if you
    can ride the bike even 50 percent of the time, your gas savings
    will be Not Small. Even at the current $3 per gallon. If it goes
    to $4 or more, and you have a bike, you have an investment
    in your financial security and a hedge against the ravages of the

    In a worst-case
    scenario — hyperinflation, with the cost of fuel soaring to $10
    or more — having a bike could be the only financially viable means
    of powered transportation left to us.

    That’s what
    I told my wife. And this time, she agreed with me!

    21, 2010

    Eric Peters
    [send him mail] is an
    automotive columnist and author of Automotive Atrocities and
    Road Hogs (2011). Visit his

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