Investing in Gasoline

Papa Sarducci

Well-Known Member
People make a big deal about how much they spend on fuel but does MPG really matter much? Well, it depends on how much you use throughout the year but it would need to be a lot. I base this on the $0.54/mile tax deduction we get at the end of the year. If you put 10,000 miles on your car you can deduct $5400 from your earnings. You are basically getting your fuel for free. 10K miles a year is 200 miles a week (we will use 50 weeks to account for holidays/vacations). Even if your car got 4 MPG and you used 50 gallons a week at $2.25/gal you will only have spent $225 more on gas than the mileage deduction reduced your tax liability by. You are basically paying down your tax bill one tank at a time. So now, instead of being depressed watching your gas gage head for empty you can just see it as your taxes going down each time.
 
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SEAL Team 5

Well-Known Member
People make a big deal about how much they spend on fuel. If you put 10,000 miles on your car you can deduct $5400 from your earnings. You are basically getting your fuel for free.
I love free gas. Now if you can only tell me how to get free commercial insurance, free car payments, free tires, free oil changes, free brake service, free transmission service, free radiator flushes and free car washes I just might make a little money with Uber X.
 

Robertk

Well-Known Member
exactly right. At $0.54/mile only a dump truck will be unprofitable when used as a taxi.

I love free gas. Now if you can only tell me how to get free commercial insurance, free car payments, free tires, free oil changes, free brake service, free transmission service, free radiator flushes and free car washes I just might make a little money with Uber X.
sounds like you are driving a real clunker. What kind of car needs tires/brakes/transmission/radiator work all in a single year? I used to drive a clunker too- it made me grumpy. When I started driving Uber I could suddenly afford a much nicer car. Maybe a better car will improve your outlook on the job.
 

SEAL Team 5

Well-Known Member
I must agree, a '15 Escalade is a real clunker. Now go back and re read my post. And this time don't substitute the word SERVICE for repair/work. I can tell you are very new to the industry. Routine service is crucial in this business. We have 16 vehicles that are all on a very stringent maintenance schedule. Most of our drivers put close to 60k miles a year on their vehicles. Even with good tires you're almost buying a new set every year. And what vehicle do you drive?
 

Robertk

Well-Known Member
I must agree, a '15 Escalade is a real clunker. Now go back and re read my post. And this time don't substitute the word SERVICE for repair/work. I can tell you are very new to the industry. Routine service is crucial in this business. We have 16 vehicles that are all on a very stringent maintenance schedule. Most of our drivers put close to 60k miles a year on their vehicles. Even with good tires you're almost buying a new set every year. And what vehicle do you drive?
60k miles per year? That's a whole lotta income. How can you not afford maintenance?
 

SEAL Team 5

Well-Known Member
60k miles per year? That's a whole lotta income. How can you not afford maintenance?
My God dude, can't you tell that was a joke. Do you really think I would use my SUV on the X platform? I've been in this business since '01. We only accept Black/SUV, which has been almost nonexistent since early '15. And because our company was very well established before Uber was even a wet spot in Travis' pants, we have and always will do very well in livery business.
 

SEAL Team 5

Well-Known Member
Ahhhhh, I want to switch to Diesel and purchase by 55 gal. Drum from boat captains . . .
What color dye will I need again ?
Just go to the farms and get their tax free diesel. Just put a fake gas tank throat so they can't see the red dye. It's a huge fine if you get caught.
 

tohunt4me

Well-Known Member
Just go to the farms and get their tax free diesel. Just put a fake gas tank throat so they can't see the red dye. It's a huge fine if you get caught.
Maybe a hidden tank with switch.
Only a SUV has a frame still to modify and fill.

But then,when I drop at airbase they would freak out over altered tank if they do mirror sweep.
 

SEAL Team 5

Well-Known Member
I think I see the problem. You don't like competition.
We don't have any competition. I'm not racist, but all our drivers are from Phoenix and have had at least 10 years exp. driving in Phx before getting on board with us. We don't hire newbies. You must speak English properly.

We have many corporate accounts in which the companies require us to list them as an additional insured. A task that is impossible for any Uber driver to perform with "rideshare" insurance. We have spare keys and security codes for many of our clients for whom only live in Scottsdale 2 months of the year. This enables us to be a "concierge" for their home while they're away. We make sure that their landscape, pool, exterminating and maid service is up kept. We provide a service that Uber or any other TNC will never be able to perform. I welcome the challenge of competition.
 
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Papa Sarducci

Well-Known Member
  • Thread Starter Thread Starter
  • #13
I love free gas. Now if you can only tell me how to get free commercial insurance, free car payments, free tires, free oil changes, free brake service, free transmission service, free radiator flushes and free car washes I just might make a little money with Uber X.
I just did. 4 MPG is ridiculously low, try the same number with 4X that. So 16 MPG will use 625 gallons to go 10K miles which cost $1400. 10K gets you a $5400 deduction so 5400-1400=$4000.
You really think you would spend $4000 on maintenance, insurance, tires, brakes, etc. in a year by putting 10,000 miles on a car? What are you driving a Maserati?
 

SEAL Team 5

Well-Known Member
I just did. 4 MPG is ridiculously low, try the same number with 4X that. So 16 MPG will use 625 gallons to go 10K miles which cost $1400. 10K gets you a $5400 deduction so 5400-1400=$4000.
You really think you would spend $4000 on maintenance, insurance, tires, brakes, etc. in a year by putting 10,000 miles on a car? What are you driving a Maserati?
"Real" commercial insurance alone is more than $4,000 a year and you can drive 1 mile or 100,000 miles. I'm going to give you the exact cost of one of our top drivers for the year ending 12/31/15.
2014 Chevrolet Suburban
miles 58,346
insurance $5324
gas $7674
maint $4098
reg $384
 

Papa Sarducci

Well-Known Member
  • Thread Starter Thread Starter
  • #15
"Real" commercial insurance alone is more than $4,000 a year and you can drive 1 mile or 100,000 miles. I'm going to give you the exact cost of one of our top drivers for the year ending 12/31/15.
2014 Chevrolet Suburban
miles 58,346
insurance $5324
gas $7674
maint $4098
reg $384
Apples to Oranges, I don't need 'real' commercial insurance to drive for Uber, my 'fake' Geico commercial insurance is sufficient.
 

Papa Sarducci

Well-Known Member
  • Thread Starter Thread Starter
  • #16
"Real" commercial insurance alone is more than $4,000 a year and you can drive 1 mile or 100,000 miles. I'm going to give you the exact cost of one of our top drivers for the year ending 12/31/15.
2014 Chevrolet Suburban
miles 58,346
insurance $5324
gas $7674
maint $4098
reg $384
58,364 miles at .54/mile = $31,506 in deduction
 

m1a1mg

Active Member
"Real" commercial insurance alone is more than $4,000 a year and you can drive 1 mile or 100,000 miles. I'm going to give you the exact cost of one of our top drivers for the year ending 12/31/15.
2014 Chevrolet Suburban
miles 58,346
insurance $5324
gas $7674
maint $4098
reg $384
I wasn't buying what you were trying to sell to begin with. But the bolded part is pure BS.
 

MSUGrad9902

Well-Known Member
I think one thing that Papa Sarducci is missing in the equation is the relationship between the IRS deduction and actual cash. Sure, the 54 cents per mile reduces your taxable earnings by $5,400 per 10,000 miles deducted, but that doesn't exactly translate into $5,400 cash. That translates into more like 20% to 25% of that (round numbers I don't know what tax bracket you're in), since you are not taxed at 100% of gross earnings. So your real number is more like $1,600 of tax savings per 10,000 miles deducted.

Suppose you make $20,000 gross on your 10,000 miles and are taxed at 30%. The IRS deduction of 54 cents per mile drops your taxable income from $20,000 to $14,600 thereby reducing your tax liability from $6,000 to $4,380, a difference of $1,620, not $5,400.
 

SEAL Team 5

Well-Known Member
I wasn't buying what you were trying to sell to begin with. But the bolded part is pure BS.
The 19 oil changes alone are over $1200. We don't get our oil changed at Wal Mart like you probably do. And we don't buy our tires at Costco. A good set of Michelins are another $1200. Then the 52 car washes at $15 each is another $780. That's almost $3200 right there. Then put @@@@@@ service, rear end service, cooling system service, a/c service and a yearly detail and you're easily over 4k. Obviously way too difficult for your pea brain to comprehend. You probably drive a little car with 14" wheels. When you want to drive with the big boys give me a PM. Otherwise your post will always be proven to be BS. One more thing, you should stay on the X platform because you couldn't afford to buy the service our company sells.
 
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