Cost of driving a car per mile.

[popeyeohoh]

I read a post here awhile back stating that it cost $1.00 a mile to drive a car. I thought that was a bit steep. Here is what I found out about calculating what your car would cost.


The price you paid for your car, minus what you could sell it for now. Add any taxes, license fee, and insurance. Add yearly maintance fees. (oil change,repairs,tires) Divide total mileage by how many miles you get per gallon. That should tell you how many gallons you will buy. Multiply gallons used by cost per gallon. Example: 15,000 yr. @23 mpg, gas@1.03= 652 gal. for a total of 671.20 Add all expenses & divide by number of miles expected.

I hope this helps. I figured out my vehicle to be .62 a mile

 

[Brian Noble]

That's probaby a bit high. The IRS allows you to deduct approximately $0.37 per mile when driving for business purposes. That's the number I use.

Edit: the reason your estimate is high is because I think you are charging much more for "early" miles than you are for "late" miles. The retail value of a car drops much more quickly in its first few years than it does in its last few, and most of that depreciation depends on time passing, not miles driven (at least within reason.)

 

[popeyeohoh]

I think you are correct. Our vehicle is 2 years old. Also 18mpg. It is staggering the cost to drive annually. I have an older car that was a gift and it costs .15 a mile to drive.



Edit The AAA says that the average cost to drive in 2004 is .56 a mile.

 

[JohnnyOldBoy]

So where are you getting that gas for 1.03?

 

[popeyeohoh]

Johny my old boy this is just an example the prices are not based in fact.

 

[Brian Noble]

My point was that, if you plan to drive the car until nearly the end of it's useful life, it is "unfair" to charge yourself more for early miles than for late miles.

If you lease or trade in new cars every few years, though, the higher number is probably fine for planning purposes.

(Yet another reason why I like to drive cars into the ground!)