1. UberPeople.NET - Independent community of rideshare drivers. It's FREE to be a person and enjoy all the benefits of membership. Sign-up HERE!

AAA Cost of Driving 15,000 Miles

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

  1. UsedToBeAPartner

    UsedToBeAPartner Well-Known Member

    Location:
    Houston, TX
    Figures don't lie but liars can figure. There are many ways of figuring costs. What do you include and what do you not? The Government allows a company to reimburse an employee at the rate of $0.54/cents per mile (last year) and this number is adjusted up and down annually. Anyone who thinks the true cost of driving their car is in the $0.20/mile range is simply sticking their head in the sand rather than adding up ALL of the costs involved in driving a car.
    You know, Gas, Insurance, ALL maintenance, license, registration, TNC, Tires, flat tires, broken windshields, interior wear and tear, car washes, depreciation!!!!!!!!!! and all the stuff I forgot to add.
    No one anywhere can drive a car for $0.20/mile unless they keep those blinkers pulled up tight.
     
    Tim In Cleveland likes this.
  2. renbutler

    renbutler Well-Known Member

    Location:
    Indy North Suburbs
    Driving:
    UberXL
    Well, you're using some cute language there to make some pretty bold assertions. You are so confident of the math that you need to back it up.

    So what's the very cheapest per-mile rate anybody could have? Where's the cheapest gas? What are the most fuel-efficient and reliable vehicles? Where is insurance and registration the most affordable? What vehicles hold their value the best?

    What does the perfect combined situation cost? Surely if you make an assertion like you do so snidely, you know the answer to this, right?

    I've done the math. I just want to see you do it. Go.
     
    Undermensch likes this.
  3. UsedToBeAPartner

    UsedToBeAPartner Well-Known Member

    Location:
    Houston, TX
    OK, so let's see your math. Don't short cut the truth. Put ALL of those costs in there. I will be happy to admit that I am wrong if you can really prove it. Be sure to include the cost of the car, financing, and loss when you sold it. I will be right here! You can even use KBB to show the current value if you have not yet sold the car. I put about 250 miles per day on my car. That does not play well in the depreciation game. Maybe you have figured out a way for your car to not show miles driven.
    In any case, I am completely open to being proven wrong (it might help me feel better about what I am doing) so fire away!
     
  4. renbutler

    renbutler Well-Known Member

    Location:
    Indy North Suburbs
    Driving:
    UberXL
    I, and others, have shown this math multiple times. And each time we are met with claims of dishonesty or deception.

    Why should I trust that you're going to believe the numbers I post? Why should I believe this wouldn't be just another waste of time?

    (No, I'm not saying I won't show the math. I'm simply asking some questions before making the effort.)
     
    Undermensch likes this.
  5. LAuberX

    LAuberX Moderator Moderator

    Location:
    Los Angeles
    Driving:
    UberX
    Late model Camry, bought and sold, driven 73,000 Miles doing Uber, exact cost .28/mile includes everything I spent on the car, purchase price minus sale price, 2 accidents, taxes, 4 tires, two years insurance and registration, lots of gas, all the maintenance, window tint...everything! If I did not get into two accidents my per mile cost would have been only .24 per mile!!
     
    Last edited: Jan 11, 2017
    Danny3xd likes this.

  6. Danny3xd

    Danny3xd Well-Known Member

    Location:
    Hartford
    Cool, LAuber. What manor of engine? 4, 6 cylinder, hybrid?
     
  7. Undermensch

    Undermensch Well-Known Member

    Location:
    Down the Shore, NJ
    Driving:
    UberX
    Two accidents in 73k miles?

    Wow.

    What was you cost if you take those out?
     
  8. LAuberX

    LAuberX Moderator Moderator

    Location:
    Los Angeles
    Driving:
    UberX
    .24 per mile
     
  9. LAuberX

    LAuberX Moderator Moderator

    Location:
    Los Angeles
    Driving:
    UberX
    SE 4 cyl
     
  10. CatchyMusicLover

    CatchyMusicLover Well-Known Member

    Location:
    Las Vegas
    Driving:
    UberX
    Insurance and registration are nessesary if you own a car. Why would you factor those in (unless you talk about gap or commercial insurance)
    Depreciation doesn't matter in totum, what matters is the DIFFERENCE between what it would have been. Hard to calculate for sure, but if you get 3000 after five years when you would have gotten 8000 in a 20000 car, only that 5000 matters, not 17000.

    This is why bringing up the 54 cent point over and over is rediculous. It still costs to own a car if you drive it 150 miles a week and work elsewhere
     
    Danny3xd likes this.
  11. renbutler

    renbutler Well-Known Member

    Location:
    Indy North Suburbs
    Driving:
    UberXL
    I generally agree with this. I have insurance anyway on my family vehicle, so it's not a direct ride-sharing expense for me. However, if somebody purchases a vehicle for ride sharing, a vehicle that they otherwise wouldn't own or use, the base insurance should count as a cost of doing business.

    That said, I don't like including insurance and registration as a mileage cost. Although insurance premiums can vary slightly if you drive extreme numbers of miles, it's not a per-mile cost.

    However, I am willing to include them in per-mile expenses anyway, just to appease the peanut gallery.

    It's very easy to determine how much depreciation costs per mile. Simply appraise the vehicle at a site such as edmunds.com, and then appraise it again using the same parameters, except increase the mileage by 1000. Determine the difference between the appraisals, and then divide by 1000 to determine depreciation per mile.
     
  12. UsedToBeAPartner

    UsedToBeAPartner Well-Known Member

    Location:
    Houston, TX
    I used to drive less than 10,000 miles before Uber and now a normal driving DAY is over 250 miles. That's closer to 65,000 miles per year. If you don't want to consider depreciation in your calculation you are welcome to do so but check with KBB for a car with 60,000 miles (6 years) or 390,000 miles (6 years of Uber).
     
  13. Trebor

    Trebor Well-Known Member

    Location:
    Bellaire
    Driving:
    UberSUV
    How much is your taxi lease? I am sure your taxi lease costs more than the actual car.
     
  14. renbutler

    renbutler Well-Known Member

    Location:
    Indy North Suburbs
    Driving:
    UberXL
    I guess you weren't that interested in seeing the math. :D

    I am still willing to post the truth, but only if you are willing to believe that my numbers are accurate...
     
  15. Trebor

    Trebor Well-Known Member

    Location:
    Bellaire
    Driving:
    UberSUV
    Do you honestly think a $4,000 cash car with 100,000 miles that you could drive for 100,000 miles without any major maintenance issues cost the same as a fully financed $30,000 car? Sure you could get 200,000 miles out of this financed car, but when the price is 7 times less it kind of increases your profit margin. Not to mention that 30,000 car with 200,000 miles on it is going to sell for the same price as your $4,000 cash car with 200,000 miles.

    Oh, and that used car will have cheaper parts.
     
  16. Trebor

    Trebor Well-Known Member

    Location:
    Bellaire
    Driving:
    UberSUV
    My interior by the way looks almost the same as the day I bought it. A uber rider is not as tough on the interior as a taxi rider. Plus, regular cleanings of the interior will keep the stink out and the interior looking fresh. I wipe down my seats and vacuum nearly after every shift. Although it sounds extreme, it takes about 10 min and it seems to be working.
     
  17. elelegido

    elelegido Well-Known Member

    Location:
    Varies
    I believe him that it is, indeed, a Camry.
     
  18. renbutler

    renbutler Well-Known Member

    Location:
    Indy North Suburbs
    Driving:
    UberXL
    Yeah, once a car reaches 50k or especially 100k miles, some people panic or get bored with their cars and "need" to upgrade. It's amazing how cheaply you can buy vehicles, for relatively little cash, that have a lot of life left in them. Even the possibly higher maintenance costs don't come close to negating the massive savings in financing, initial depreciation, and...

    Cheaper parts, cheaper insurance, and where I live cheaper registration.

    The only higher cost of driving an older car, in theory, is maintenance, but that can vary widely by make or model. My 2007 Hyundai encountered some issues as it approached 100k miles, but my 2005 Hyundai Elantra so far has been extremely reliable approaching 105k miles.

    And it's a fact that some newer cars have serious issues that need to be addressed early in their life spans.
     
    Danny3xd and Trebor like this.
  19. Trebor

    Trebor Well-Known Member

    Location:
    Bellaire
    Driving:
    UberSUV
    If you are DIY type of person, 95% of your repairs will be less than $400. Very rarely will you spend over $400/month on repairs (what a new car would be monthly) If you do, its only a one month type of deal. Most cars can easily reach 150k without needing anything. After that you can count on having some problems that may be costly if you can not DIY.
     
  20. Sub Guy

    Sub Guy Active Member

    Location:
    Virginia Beach
    A couple of comments:
    Yes a purely personal car will depreciate but a car used for your business will depreciate faster than if you ONLY used it for personal use because you drive it more than you would have. IRS allows you to deduct that portion (percent) of the depreciation that is related to the business use of the vehicle. You should do so. A new car will have more depreciation than a car that is already 5 years old when it is put in service.

    Along with all of the other items that can be viewed as auto expense related I don't recall seeing deductions for the business portion of the following discussed:
    1. Personal Property Tax
    2. Roadside Assistance (AAA or Good Sam's etc.)
    3. The portion of the loan interest attributable to the business use of the vehicle (that business use % again)

    Since most people will be able to get their "taxable net income" down low taking a section 179 deduction may not make sense vice amortizing the depreciation over the "life" of the asset (IRS defines expected life of most assets) Section 179 lets you write off the entire value of the asset in the first year up to a set limit ($500,000 for 2016) but since most will not have taxable income to use the deduction against few if any of us will be able to make use of this although I may write off the phones we purchased and cable/charging station upgrades.
     

Share This Page