answersLogoWhite

0


Best Answer
From the AAAIn the US, according to the AAA, the cost of operation is an average of 56 cents per mile. AAA includes the cost of depreciation of a new car, more than $3,500 per year. The actual cost can be much higher or lower depending on type of car, new or used, and miles driven. The more miles you drive, the lower the cost per mile.

AAA estimates by car size (gasoline $2.30 per gallon, 60% city driving)

Small car : 50.5 cents (10,000 miles) to 35.4 cents (20,000 miles)

Medium car : 70.2 cents (10,000 miles) to 45.5 cents (20,000 miles)

Large car : 86.8 cents (10,000 miles) to 54.9 cents (20,000 miles)

*The IRS in 2010 allows 50 cents per mile in computing expense deductions.

Cost Per Mile vs. Service Costs

*There is a long explanation that a WikiAnswers contributor had published in Mortgage magazine in March of 2005 under their copyright. Keep in mind insurance, gasoline and depreciation are relative to the vehicle.

Here are excerpts:

As a service writer, I am continually asked, "When should I get rid of my car?" Or I am faced with a distressed customer who has spent $600.00 on a car that they think they could buy for $500.00, clamoring that "It's time to get rid of this thing and buy a new one." There were times of internal stress that was felt because our customer was possibly putting money into a vehicle that they thought they shouldn't be, giving the illusion of "ripping off the customer". While we never have a crystal ball to know what will happen in the future, giving the best advice possible is paramount.

We had a customer named Neil who had an old Pontiac 6000 that looked like it was on its last legs: visually as well as mechanically. I told him to lose the car before it nickel-and-dimed him to death any worse. Even though it was cutting my own throat, I owe him my honest opinion. We talked about other options that were out there and he looked around but couldn't quite find what he wanted; besides he liked his old jalopy. It served his needs and was paid for. Faithfully, I would see him every couple months for a few hundred-dollar repair bill. This went on for 5 years. He eventually moved to New England, driving the old rickety but dependable Pontiac wagon. It made me analyze my recommendations a little closer and re-think about when is the time to replace. Meanwhile, I had watched technicians over the years driving some real rust buckets or buying them from a customer because the owner didn't want to spend $500.00 to repair a car, because the car was only "worth" $1000.00. The technician looked at it differently: setting aside the repairs for him would be much less expensive. The shop owner I work for had always presented the answer to the question: "Is it worth fixing?" into a logical light. He would reply to the owner, "Do you like the car?" and then follow up with, "Can you buy a car that you know is the exact same condition as your present car for the same cost as what your repair bill will be?" Many times customers repaired their car with this logic. But living in this disposable society, I still had trouble quoting a repair that rivaled the expected market value of the car itself.

For years I fought with doing the right thing for my customer as well as the right thing for my employer. There had to be a better way of answering these questions based on more than what I would do if it was mine or what I felt was right for them. After all, what is their financial obligation compared to mine? That is part of the equation for whoever's car it is. What I needed to know was how it could be answered with a common denominator. We had a customer that came in and needed $600.00 worth of work on their 1994 Hyundai. They were customers that kept up on the maintenance we recommended and did repairs as required. Being a loyal customer, it seemed reasonable that they would be a good customer to use for number crunching. I added all of their invoices from 36,000 miles to the present mileage. I used these numbers because this is the mileage that the majority of the manufacturers' warranties expire. The current mileage is subtracted from the 36,000-mile warranty expiration point. I then divided the dollars spent by this to get a dollars-per-mile figure. It came out to about $.08/mile. This didn't mean much at this point. So to get a better comparison to what new car is going to be costing the customer; the purchase price is divided by the first 36,000 miles that it is under warranty. Since a new car owner is getting "problem free driving" for 36,000 miles, the purchase price should not be extended beyond this. Using a purchase price of $15,500 plus the sales tax, tags, title brings it to about $17,000 yielding about $.47/mile. This figure does not include oil changes, tire rotation, interest on a loan or an insurance premium increase. Now that means something! I went back to other loyal customers in our database and found they generally pay $.07 to $.13 per mile to run their vehicles. So they save a minimum of $5,100.00 more annually if they drive 15,000 miles.

User Avatar

Wiki User

โˆ™ 2010-04-16 16:12:18
This answer is:
๐Ÿ™
1
๐Ÿคจ
0
๐Ÿ˜ฎ
0
User Avatar
Study guides
๐Ÿ““
See all Study Guides
โœ๏ธ
Create a Study Guide
More answers
User Avatar

Anonymous

Lvl 1
โˆ™ 2020-06-21 20:15:24

50 cents per mile.

User Avatar

Add your answer:

Earn +20 pts
Q: What is the average cost per mile to operate a car including depreciation maintenance gasoline and insurance?
Write your answer...
Submit
Related questions

What is the average cost per kilometer to operate a car including depreciation maintenance gasoline insurance etc?

about 0.15 USD/Km without including gasoline


What is the average cost per mile to operate a car including depreciation maintenance gasoline insurance etc in the year 2007?

29,678$


What is the average cost per mile to operate a car including depreciation maintenance gasoline insurance etc in 2007?

That would depend on the car you are talking about. -IownaDragon


What is the average cost per mile to operate a car including depreciation maintenance gasoline insurance etc?

Check out Edmunds.com for the actual cost calculator. A Honda civic (new) is 30 some cents per mile, a more expensive car such as a Ford Mustang GT V8 is about 40 cents per mile.


What are the disadvantages of using car by transportation?

$ $ $ $ $ $ $ $ $ $ $ ! ! ! ! ! gasoline , oil changes, taxes , cost of car, insurance, tires, other maintenance , broken parts, wear items = brakes,filters,shocks, then rust , then accidents = wow more =ductibles,towing wow !


Can you deduct truck payment and mileage on business taxes?

NO. Go to the IRS gov website and use the search box for Car and Truck Expense Deduction Reminders The standard mileage rate is used in place of actual expenses. Taxpayers who choose the standard mileage rate may not deduct actual expenses, such as depreciation, lease payments, maintenance and repairs, gasoline (including gasoline taxes), oil, insurance or vehicle registration fees. Business-related parking fees and tolls may be deducted in addition to the standard mileage rate. Fees for parking at a taxpayer's main place of business or tolls related to commuting to and from that main place of business are personal expenses which are not deductible. The standard mileage rate cannot be used if the taxpayer:


Can you get insurance coverage for expenses like gasoline or utility expesenses?

I've never heard of such a thing.


Where can one purchase gasoline gift cards?

Gasoline gift cards can be purchased at a variety of different places including most local gas stations, as well as online on a variety of websites including Shell Gas and Walmart.


Does Costco's sell diesel generators?

Diesel generators are just as effective as their gasoline counterparts. in fact, diesel generators are often run more efficiently than gasoline powered ones and need less maintenance.


What is a recommended as part of the annual maintenance program for a gasoline powered boat?

Examination of thru-hull fittings for signs of leakage or corrosion


What is recommended as part of the annual maintenance program for a gasoline power boat?

Examination of thru-hull fittings for signs of leakage or corrosion


What regular maintenance does a hybrid car need?

The maintenance for hybrid is cars is similar to regular gasoline cars. You still need to do regular oil changes, but these can be done at larger intervals. Generally, hybrid cars require less maintenance, but make sure to check electric cords and connections


Average pay for bills?

i am paying about 1300 a month. not including credit cards and gasoline


What class of fires consists of flammable liquids including stove alcohol gasoline diesel?

a


Are concession trucks expensive to own?

Concession trucks could be expensive to own, especially in this day and age, when fuel costs are on the rise. When owning a concession truck, you could expect to pay basic vehicle expense and upkeep (any payments, gasoline, insurance and maintenance) as well as the cost of the merchandise you are peddling!


What are some major expenses of owning a vehicle?

The gasoline, insurance, repair, and RESPONSIBILITY!!!


Which of the following is recommended as part of an annual maintenance program gasoline powered boat?

Examination of thru-hull fittings for signs of leakage or corrosion


Which of the following is recommended as part of the annual maintenance program for a gasoline powered boat?

Examination of thru-hull fittings for signs of leakage or corrosion


Which class of fires consists of flammable liquids including stove alcohol, gasoline?

Class b


Why is gasoline called gasoline?

Gasoline is called Gasoline because we call it Gasoline. Or is it called Gasoline because it IS Gasoline - Existentialism


Wich of the following is recommended as part of the annual maintenance program for a gasoline-powered boat?

Examination of thru-hull fittings for signs of leakage or corrosion.


Can gasoline that you use in your car cause that gunk build up on the valves like shell says it can in their advertisement on tv?

over a long period of time any gasoline will cause gunk in you system. but don't run out to buy their gasoline yet because all gasoline companies put additive in their gasolines to help keep your system clean. that gunk takes years to build up.good vehicle maintenance will prevent that.


Which class a fires consists of flammable liquids including stove alcohol gasoline and diesel?

Class B


Which class of fires consist flammable liquids including stove alcohol gasoline and diesel?

Class b


Which class of fires consists of flammable liquids including stove alcohol gasoline and diesel?

Class "B"