Posted by Jason on 8/30/06 8:56am
Msg #142071
Mike's calculator: true cost per mile to run your car
Mike Photon posted a url for a car cost calculator earlier today.
Very important info. Deserves its own thread.
My car came to 68c per mile.
So if I take a signing 25 miles away, my car cost is $34 !
Quote from Mike's post:
Here is a tool that gives you just what you really need to find the true cost to own a car - per mile:
http://www.edmunds.com/apps/cto/CTOintroController
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Reply by WDMD on 8/30/06 9:24am
Msg #142081
Mine was .44/mile n/m
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Reply by cassiewi on 8/30/06 9:36am
Msg #142085
Re: Mine was .42/mile n/m
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Reply by PL on 8/30/06 9:37am
Msg #142086
Yeah, but Uncle Sam is allowing you 44.5 cents/mile on your
taxes, so for most it maybe a wash. Also if you look closely at their calculations, it makes some assumptions that I think maybe on the high side. There is no doubt that this is a business that is hard on your car, but it like supplies, taxes and your time all add up to the cost of being in business. Price your services correctly and all of us should be fine.
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Reply by Bob_Chicago on 8/30/06 9:41am
Msg #142089
Not necessarily the correct way for a NSA to look at it
The Edmunds calculation includes. depreciation, interst, insurance , taxes,
licenses, etc.
Many of these costs are incurred if the car is taking you to a signing
or sitting in your garage.
I believe that the correct way to determine your costs so as to
decide if it is profitable to accept an assignment is to determine the
"incremental cost" of driving. I look at the additional costs that I incur if
my car is in motion. (eg. gas. oil change etc. every x.000 miles, and excess mileage
depreciation .
My calculation is less than 20 cents/mile
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Reply by BrendaTx on 8/30/06 10:07am
Msg #142097
Re: Not necessarily the correct way for a NSA to look at it
That's interesting.
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Reply by Gary_CA on 8/30/06 12:21pm
Msg #142161
Split the difference
Bob's absolutely right... but then again, if a business takes up half my waking life I want it to pay half my car... well sort of.
Some of that "sitting in the garage" cost has to be absorbed by the business in reality... and in the tax world I want it to absorb most of it.
Sorta splitting hairs I know... but several aspects apply: 1) I can take a driving assignment that pays less than the total cost, i.e. somewhere around $.20 /mile. 2) I don't want to give half my car to my business... I'd like to recoupe it's fair share of the $0.44 / mile or so. 3) I'd like Uncle Sam to steal as little from me as possible.
Good food for thought, thanks.
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