cost per mile?

[stiller fan]

how do you figure it out???? i know that you have to own mostly all of your receipts (which i do).... any kind of complex formula that needs to be used??? :confused:

TIA :wave:

[BenjiBoy650]

Incl. my insurance, tax/title/reg, gas and maintenance, I'm at 29 cents per mile. That's with my sky high insurance rates....ahhh the perks of being a teen.

[princess]

That's not including the price of the car, right?

'cuz... I get the figure of 3.13 per mile....

almost years of insurance, registrations & taxes, the car, maintaince, accessories, & I now have 13,339 miles on her!

I just added up what I figure has been spent & divided by the mileage.... does that work?

[stiller fan]

:dunno:

[BenjiBoy650]

If not including the price of the car, your figure should be pretty low.

Cost
-------
Mileage

Princess, at 3.13 per mile, you spent over 40K on her this past year :nuts:

[princess]

oh shoot, I forgot the GALLONS of water for washing..... :lmao: :lmao: :lmao:

[princess]

Just taking out the price of the car, but leaving in the accessories, it's .51




.36 if the accy. are included in the price of the car!

[princess]

wouldn't that be lifetime? since I used her whole mileage & costs?

[princess]

revised.... I used too low a mpg figure.... now it's .33...........

If I do this long enough the car will be paying me to drive her!!! :lmao: :lmao:

[stiller fan]

:lmao:

[n1accord]

Cost per mile generally encompasses all expenses related to owning and operating the vehicle. So the cost to-date of the vehicle should not be excluded and is called depreciation.
One way to figure depreciation is to first sum up your purchase price plus aftermarket accessories to get the total of what you've "invested" in the vehicle. Then subtract what you could get if you sold it today. The difference is what you have paid thus far for the use of the vehicle, or how much it has depreciated. Divide this depreciation by the miles driven and you have the "depreciation cost per mile" to add to the other costs.
If you have a car loan, the interest paid to-date is the cost of using other poeple's money and another cost to figure in.

I'm not sure of the current mileage deduction allowed by the IRS, but $0.32 is ballpark and is about average. With Hondas, it's easy to beat this average unless you pay MSRP, heavily mod, trade often, and borrow the money.

[princess]

Well, I liked the other one better.... it went up to 1.23 now!

So if you have 37K spent on the car, no loan & the adverage used price is 25K, that's 12K difference. Costs since you've owned it are registrations, gas, maintaince, & insurance about 4500. And there's 13339 miles....

:dunno:

When I was paid to shop I got .26 per mile from the company I worked for & at the time IRS's figure was .29.....but I've never understood HOW they came up with it since it's nver been close to what I've actually thought. :)

[n1accord]

You're catching on! Depreciation cost is highest in the first few years of ownership. Do the same calculation on an older car and look at the difference in cost per mile. Of course insurance and taxes will be lower for the older car, and repair a little higher, but you save big on depreciaton.

Once you understand depreciation, you can probably make better decisions about what your car strategy truly costs. Not that it adds a whole lot of fun to the process, but I like knowin' where it's goin' $$$ :yes:

[princess]

But is cost of ownership & figuring out depreciation the same thing?

It's not to me... I view it as what I spent is done & overwith, so now what does it cost to drive what I own? When I only have that 4500 or so in a lifetime of it, so that's 204 per month with registration, insurance, gas & maintaince.

It sure sounds better to have .33 per mile than 1.23! :yes: I think with a bit of creativity I could get it so I make money by owning my Accord! :naughty: Of course, someone else with the exact same car, set up the same way would have more expense.... I've not paid one dime in labor..... :) Oh wait, I take that back.... we paid the window tinter! And it was well worth it!! :thmsup:

[n1accord]

If you exclude depreciation, then it's like saying the car was a free gift. Somehow, the cost of the car needs to be accounted for to get an accurate picture of the total cost of ownership. If you want to consider only operating expense, then that's only part of the total cost of owning the car.

Another way of looking at it is, if you view what you've spent as over and done, then when you are ready to sell, why would you expect to get any money back out of the car? See, over time, the car has decreasing value which is what it costs you to continue to keep it, rather than sell it now.

BTW, I don't have a degree in finance, so any experts should feel free to clarify.

[xcel]

Hi All:

___Used cars generally have a much lower TCO (Total Cost of Ownership) or (True Cost to Own as Edmunds calls) then a new automobile given the much lower initial purchase price and lower depreciation from that smaller initial purchase price. It is the maintenance part of the equation that could fall apart on you with a used automobile of whatever type …

___My last used automobile (2000 Honda Insight) worked out very well in the $/mile category and the following template might be of some use to others?

Depreciation: $305 - Purchase price in Dec. 04 ($10,000) - Sale price in April 05 ($9,695)
Financing: $000 - Cash purchase
Insurance: $560 - This is IL. coverage over 1.33 years.
Taxes and Fees: $770 - IL. state taxes on purchase + TL fees.
Fuel: $734 - 37.2K miles with actual fuel cost.
Maintenance: $110 - 5 x $22.00 Mobil1 0W-20 and Supertech filter changes.
Repairs: $440 - Cracked windscreen replaced, (1) new Bridgestone RE92 for one w/ a screw through the sidewall.

Totals: $2,919 over 37.2 K miles.

___The TCO worked out to be $0.078/mile. The 05 Accord will be much steeper then the above because of the much higher initial purchase price, higher depreciation hit, and much lower FE. Even so, the Accord will still have one of the lowest TCO’s in its class (Mid-size) due to the Accord’s “Best in Class” low depreciation, hopefully low maintenance costs, as well as its relatively good FE.

___I hope everyone finds this to be the case with their own Accord’s.

___Good Luck

___Wayne R. Gerdes

[Bigbucks1959]

Looks like it will be hard to figure out a cost per mile until we know the depreciation figures.

Phil K.

Hi All:

___Used cars generally have a much lower TCO (Total Cost of Ownership) or (True Cost to Own as Edmunds calls) then a new automobile given the much lower initial purchase price and lower depreciation from that smaller initial purchase price. It is the maintenance part of the equation that could fall apart on you with a used automobile of whatever type …

___My last used automobile (2000 Honda Insight) worked out very well in the $/mile category and the following template might be of some use to others?

Depreciation: $305 - Purchase price in Dec. 04 ($10,000) - Sale price in April 05 ($9,695)
Financing: $000 - Cash purchase
Insurance: $560 - This is IL. coverage over 1.33 years.
Taxes and Fees: $770 - IL. state taxes on purchase + TL fees.
Fuel: $734 - 37.2K miles with actual fuel cost.
Maintenance: $110 - 5 x $22.00 Mobil1 0W-20 and Supertech filter changes.
Repairs: $440 - Cracked windscreen replaced, (1) new Bridgestone RE92 for one w/ a screw through the sidewall.

Totals: $2,919 over 37.2 K miles.

___The TCO worked out to be $0.078/mile. The 05 Accord will be much steeper then the above because of the much higher initial purchase price, higher depreciation hit, and much lower FE. Even so, the Accord will still have one of the lowest TCO’s in its class (Mid-size) due to the Accord’s “Best in Class” low depreciation, hopefully low maintenance costs, as well as its relatively good FE.

___I hope everyone finds this to be the case with their own Accord’s.

___Good Luck

___Wayne R. Gerdes

[n1accord]

Looks like it will be hard to figure out a cost per mile until we know the depreciation figures.

Phil K.

Not too hard. Depreciation is intended to consider a projection of future value. So you could look at the known depreciation of earlier Accords to estimate how yours will depreciate. If you have significant mods involved this will tend to work against you, so again, an estimate is called for.

For me, the excerise is mainly intended to compare alternatives for decison-making. If I make consistent assumptions, then even if they are not precise, the basis for comparison is vaild. Down the road, I might look back to see how far I was off, and tweak the assumptions for the next decsion, but it's not that critical.

Honda, on the other hand, is interested in actual depreciation for bragging rights, and indeed they have to wait until that data is available.

[Inspector1]

IRS rate 2004 37.5 cents per mile 2005 40.5 cents per mile :banana:

I1 :thmsup:

[n1accord]

Just another thought . . .

Say you store your car for 5 years in your garage. And then sell it. Did it cost you anything just sitting for 5 years? What if you had sold it with the same mileage 5 years sooner? Wouldn't you get more money for it if you had sold it sooner? This is depreciation. The mileage did not change, but your cost per mile went up.

I was once advised to always buy used depreciating assets (cars, mobile homes, lawn mowers, boats, time shares) to minimize exposure to high depreciation on such items purchased new. By contrast, appreciating assets such as homes do not have this concern (but do have other issues). To minimize depreciation on a new car, buy it right, maintain it, and drive it forever. "The cheapest car to own is nearly always the one you already have." - - Larry Burkett

[stiller fan]

To minimize depreciation on a new car, buy it right, maintain it, and drive it forever. "The cheapest car to own is nearly always the one you already have." - - Larry Burkett

sounds like a good plan to me.... :lmao: :naughty: :nuts: :yes: :D

[stiller fan]

ok, i figured out my TCO today (i think).....

i added up all of my recepits on hand (dating back to first oil changes).....

granted, it does not include gas receipts tho.....


after all that:
- spent approx $11,200 on car for maintenace / repairs
- 180,000 miles

if i divide the total money put into car (includes sale price), by the number of miles..... it comes out to a little over $0.06 per mile......

and btw, with repairs, maintenance and sale price (does not include insurance)... i am looking at about $64.26 lifetime per month.....



at this rate, i guess i'm never going to get a new car, if my figures are correct..... :lmao: :nuts:


----------------------------------------------


EDIT: it was .062 per mile, not .02 per mile.... used wrong figure above..... corrected....

i had put the .02 in to figure out TCO w/o inluding sale price.....

[BenjiBoy650]

I don't get the math but I did 11200/180,000 and i got .062...?

[stiller fan]

that would be right.....

that would be 6 cents, correct?

[stiller fan]

made mistake in post..... read above where i edited it...... fixed it... :yes: :thmsup:

[BenjiBoy650]

Yup 6 cents...

I don't have access to my records right now (just reformatted, didn't reinstall Excel yet)...but it's something around 13 or 14K total incl insurance/reg/purchase/gas/maintenance/upgrades and about 22400 miles so about 10x what your cost per mile is lol

[stiller fan]

:lmao:

at this rate, i may never get a new accord..... :nuts:

only question is, will she see 500k miles????

and btw, i am slowly starting to fix her up if i have money to spare..... :yes:

[EXLNavi]

IMO, buying a new car almost never makes financial sense.

Most people I know who buy new cars buy them for other reasons.

So if you want a new car, don't try to justify it, just buy a new car.

[BenjiBoy650]

I disagree. If you look at Honda and Toyota in my area, they go for new or MORE THAN new prices even when they're slightly used (compare sale prices...not MSRP's and KBB's). And to add insult to injury, I don't even get the break the car in. Why do a lot of people buy a new car and not name it, but they name their used cars? You do it because you need to make a used car become yours. I'd rather buy new than slightly used.

[n1accord]

If you look at Honda and Toyota in my area, they go for new or MORE THAN new prices even when they're slightly used...
That's true here also. So who buys those used cars when they can have a new one for less - - uninformed consumers? :dunno:
Regardless, I also understand where EXLNavi is coming from, and IMO it applies to both new and used cars. That is, the majority of the time, it does not make good financial sense get rid of your current car and go get something else - - yes, there are exceptions, but most of the time we rationalize what we want and don't let the negative financial impact deter us.

[BenjiBoy650]

That is, the majority of the time, it does not make good financial sense get rid of your current car and go get something else - - yes, there are exceptions, but most of the time we rationalize what we want and don't let the negative financial impact deter us.
Well, I knew that but I was assuming the case that you had to get a car. If I had a choice between a slightly used 04 or 05 and a new 06, it makes much more sense to take the 06. For example, 05 Ody w/ 5-15K miles here has been going for only about $1000 under MSRP...I can get it at invoice at the dealer. We've also been looking at 04/05 Sienna. Toyota Certified w/ 20-40K miles, they're going for 2-3k under MSRP...when a new 06 is running 4-5K under MSRP. Same case with 03+ Accord and 02+ Camry. 02 Camry around here is still running for 10-18K (depending on trim and mileage) - new 06 LE is 16788.

[ItsaHonda]

only question is, will she see 500k miles???? >>>

http://i16.photobucket.com/albums/b5/ItsaHonda/1MillionMileArticle.jpg

[stiller fan]

my mechanic has same article hanging up in his shop.... :lmao: :notworthy