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AAA Cost of Driving 15,000 Miles

Discussion in 'News' started by Tim In Cleveland, Jan 5, 2017.

  1. Tim In Cleveland

    Tim In Cleveland Well-Known Member

    2016 Costs per AAA study
    Couldn't find a nice graphic, but basically:
    Small Sedan: $6,579 (43.8 cents per mile)
    Medium Sedan $8,604 (57.36 cents per mile) <---Most Uber drivers
    Minivan $9,262 (61.74 cents per mile)
    SUV $10,255 (69.94 cents per mile)

    Factor in driving empty to busy spots, to pick up a customer or returning to busy areas and then judge the yahoos that hop on here claiming it's much cheaper to operate a car based on figures pulled out of their butts.

    http://www.eastcentral.aaa.com/home/automotive/driving-resources/cost-of-driving.html
     
    Beur, Replicant 84, tohunt4me and 3 others like this.
  2. RamzFanz

    RamzFanz Well-Known Member

    Location:
    Saint Louis
    That's based on a fully financed new car off the lot taking a massive lost equity hit over the first 5 years. It also assumes the manufacturer recommended maintenance schedule is used at the dealership, which only a fool would do. So, no, it's not an average. My actual total cost of Ubering in 2015 was .17 a mile including lost equity and .20 a mile in 2016, and I drive a minivan.

    Actual costs, not pulling new car costs out of our butts pretending it's typical. Math is your friend.
     
    Last edited: Jan 5, 2017
    Undermensch and renbutler like this.
  3. ubershiza

    ubershiza Well-Known Member

    Location:
    miami
    arguing-couple.jpg
    I love how you guys write these long rants in an effort to dissuade da people s from driving when in reality only a small fraction of app drivers read this drivel.
     
    Last edited: Jan 5, 2017
  4. Tim In Cleveland

    Tim In Cleveland Well-Known Member

    Both the IRS and AAA are giving real costs. You disputers dig baloney out of your butt.
     
    tohunt4me and jonnyplastic like this.
  5. LAuberX

    LAuberX Moderator Moderator

    Location:
    Los Angeles
    Driving:
    UberX
    I keep solid records. actual cost driving my Camry for Uber .28/mile
     

  6. Mears Troll Number 4

    Mears Troll Number 4 Well-Known Member

    Location:
    Orlando-ish
    Driving:
    Taxi
    Have you sold the alleged Camry yet?

    Until you sell the car you won't know how much it's depreciated to know what it's actually costing you per mile.

    Condition of the interior alone can knock $1000 or more off the value of the car on resale. Heck just knowing the car was used to uber could have a large negative impact on it's value. In the near future it's probobly going to be something that you have to disclose, like accidents. Also you could be building towards needing more mechanical work than you would otherwise need for a car of similar age of a similar number of miles. My last Sienna for instance reached absolute zero value when it hit 210,000 miles and needed a new transmission, suspension, Brakes in 10-15,000 miles, engine rebuild in 3-4 months, a bunch of stuff i can't remember, the interior needed redone (for the third and half time)... it just wouldn't have been worth it to fix. And it was only 4 1/2 years old. The car was literally, totaled by the amount of work it needed done.



    If you think that putting miles on a car doesn't effect it's value keep in mind that if you put 50,000 miles a year on a car it's only going to last maybe 5 years. If you put 10,000 a year you can get 10-15. That puts you in a situation where your buying 3 times as many cars per year... fascinating math that people seem to ignore.

    And the number I had for buying a Sienna new and getting commercial insurance to used it as a taxi only came to bout 50c a mile over 200,000 miles. So once your putting in excess of 30,000+ miles a year your insurance cost per mile does in fact go down substantially.

    The first year my actual costs were $1.00 per mile (This is including the purchase price)
    The second year my actual costs were 25c per mile (this is no maintenance costs at all just gasoline and insurance)
    The third year my actual costs were 35c per mile (my 10 year 100,000 mile warranty is over, stuff needs fixed)
    The fourth year my actual costs were 40c per mile (maintenance costs drug my math down) [POS car gets sold for next to nothing]

    Averaging out to 50c per mile.

    The only year that didn't come out to way under my 4 year average is year numero Uno.
     
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  7. RamzFanz

    RamzFanz Well-Known Member

    Location:
    Saint Louis
    Nope, it's not an average, it's the cost of a fully financed car in it's first 5 years of life. University studies show the same numbers.
     
  8. RamzFanz

    RamzFanz Well-Known Member

    Location:
    Saint Louis
    Get the KBB resale value at the beginning of the year and again at the end, subtract the new number from the old and divide that by the miles driven, now you know what your lost equity there was by the mile. Unless you're in a 2016 or an expensive car, it won't be anywhere near the AAA number or IRS deduction.

    Of course condition matters. All of this is considered in the KBB estimated value.

    Of course milage matters. All of this is considered in the KBB estimated value.

    Yes, because you bought it new, and you still didn't hit the AAA estimate. My point exactly.
     
    Last edited: Jan 8, 2017
    Undermensch likes this.
  9. Dontmakemepullauonyou

    Dontmakemepullauonyou Well-Known Member

    Location:
    West Coast
    Numbers don't lie, people lie, in this case uber drivers lie to themselves to prevent a nervous breakdown.
     
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  10. RamzFanz

    RamzFanz Well-Known Member

    Location:
    Saint Louis
    Numbers don't lie, but people use the wrong numbers to lie.
     
  11. Oscar Levant

    Oscar Levant Well-Known Member

    Driving:
    UberX

    That's every mile, paid mile or dead mile. So, if paid miles are 50% of total miles, then every paid mile costs the driver double that figure, and compare that to the meter. You are operating at a loss !
     
    Tim In Cleveland likes this.
  12. LAuberX

    LAuberX Moderator Moderator

    Location:
    Los Angeles
    Driving:
    UberX
    Yes.

    That is why I am certain of the exact cost of .28/mile to drive that car. Not everybody has the same experience, or costs, I am just sharing mine.

    That being said, even with my cost being less than the AAA figure there is zero profit driving UberX in Los Angeles with the current rates. I averaged one dead mile for every paid mile, so there is just no "profit" when you take all the actual expenses into account.
     
    Tim In Cleveland and grams777 like this.
  13. Oscar Levant

    Oscar Levant Well-Known Member

    Driving:
    UberX
    Did you deduct depreciation, interest, gas, maintenance, i.e, everything?
     
  14. LAuberX

    LAuberX Moderator Moderator

    Location:
    Los Angeles
    Driving:
    UberX
    Everything. Purchase Price-Sale price= actual vehicle cost+ Tires, Gas, Oil changes, Brakes, Body damage, window tinting, registration, insurance.....

    Nothing was "estimated" this was my real world cost of a vehicle used 100% for UberX.
     
    Danny3xd likes this.
  15. Oscar Levant

    Oscar Levant Well-Known Member

    Driving:
    UberX
    The AAA eval was done over 5 years. Come back in ( a total of ) 5 years, do everything, and see what you come up with.
    Of course, you wont be driving that long (if you are smart ) , just sayin' .

    But, until then, IRS allows you to deduct 57 cents ( or so ) so your tax bracket can be less that "real world". But, the bad news, given that you are "self-employed" you must pay 100% of the social security tax ( 50% if you were an employee ).
     
    Tim In Cleveland likes this.
  16. renbutler

    renbutler Well-Known Member

    Location:
    Indy North Suburbs
    Driving:
    UberXL
    I think some people are having trouble with the term "average."

    It's a bell curve -- a small number will have a very low cost, a small number will have a very high cost, and then numbers increase the closer you get to the middle. It means that some people can beat it, and a few can beat the average quite easily, based on location and choices.

    So, yes, some very strategic folks among us can get away with very low per-mile costs.

    Math is good.
     
  17. LAuberX

    LAuberX Moderator Moderator

    Location:
    Los Angeles
    Driving:
    UberX
    Social Security is a double edged issue. On one hand you want a LARGE earned income to have a good life, and accumulate money in your social security account... if you make say $70,000.00 per year in Taxable income you will end up with around $2,400 per month when you hit SS retirement age.

    If you are a broke Uber driver with ZERO taxable income you pay ZERO into social security and end up with peanuts at retirement age.... Oh, I forgot, you will have "savings" from the mileage deduction!! This is really not likely imho... any "savings" are spent just to scrape by.

    Social security is based on your taxable or "NET" annual income, no income=Nothing to pay now, and low social security payout when you retire.

    In other words, the self-employed person's FICA tax rate for the year 2016 consists of the Social Security tax of 12.4% (6.2% + 6.2%) of the first $118,500 of net income plus the Medicare tax of 2.9% (1.45% + 1.45%) of every dollar of net income.

    Having a low income hurts now, and hurts more later. Real jobs/careers/businesses build real wealth, anybody doing this full time will have little to show for it.
     
    Last edited: Jan 9, 2017
  18. Hilljacker

    Hilljacker Well-Known Member

    Location:
    MInneapolis
    Maybe it's because I grew up in the '70s but getting 210,000 miles out of a car sounds pretty good to me. And is it really worth "absolute zero"? If it runs and drives, it's going to be worth $500 - $1000 at least in my area. Maybe consider donation to a charity and write off the value?
     
  19. renbutler

    renbutler Well-Known Member

    Location:
    Indy North Suburbs
    Driving:
    UberXL
    Heck, I grew up in the '80s, but I remember when reaching 100,000 was a big deal! My first car (a '92 Cavalier) barely made it to 90k when the engine was toast.

    My mom just upgraded her 1999 vehicle. I helped her buy a lightly used vehicle with 40k miles. She thought that sounded like a ton of miles, but I told her that these days 40k probably isn't even 25% of the vehicle's useful life. She's 73, and she could live another 20 years with this new vehicle, as little as she drives.
     
  20. Hilljacker

    Hilljacker Well-Known Member

    Location:
    MInneapolis
    Exactly!
     

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