# AAA Cost of Driving 15,000 Miles



## Tim In Cleveland (Jul 28, 2014)

2016 Costs per AAA study
Couldn't find a nice graphic, but basically:
Small Sedan: $6,579 (43.8 cents per mile)
Medium Sedan $8,604 (57.36 cents per mile) <---Most Uber drivers
Minivan $9,262 (61.74 cents per mile)
SUV $10,255 (69.94 cents per mile)

Factor in driving empty to busy spots, to pick up a customer or returning to busy areas and then judge the yahoos that hop on here claiming it's much cheaper to operate a car based on figures pulled out of their butts.

http://www.eastcentral.aaa.com/home/automotive/driving-resources/cost-of-driving.html


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## RamzFanz (Jan 31, 2015)

That's based on a fully financed new car off the lot taking a massive lost equity hit over the first 5 years. It also assumes the manufacturer recommended maintenance schedule is used at the dealership, which only a fool would do. So, no, it's not an average. My actual total cost of Ubering in 2015 was .17 a mile including lost equity and .20 a mile in 2016, and I drive a minivan.



Tim In Cleveland said:


> then judge the yahoos that hop on here claiming it's much cheaper to operate a car based on figures pulled out of their butts.


Actual costs, not pulling new car costs out of our butts pretending it's typical. Math is your friend.


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## ubershiza (Jan 19, 2015)

I love how you guys write these long rants in an effort to dissuade da people s from driving when in reality only a small fraction of app drivers read this drivel.


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## Tim In Cleveland (Jul 28, 2014)

Both the IRS and AAA are giving real costs. You disputers dig baloney out of your butt.


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## LAuberX (Jun 3, 2014)

I keep solid records. actual cost driving my Camry for Uber .28/mile


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## Mars Troll Number 4 (Oct 30, 2015)

LAuberX said:


> I keep solid records. actual cost driving my Camry for Uber .28/mile


Have you sold the alleged Camry yet?

Until you sell the car you won't know how much it's depreciated to know what it's actually costing you per mile.

Condition of the interior alone can knock $1000 or more off the value of the car on resale. Heck just knowing the car was used to uber could have a large negative impact on it's value. In the near future it's probobly going to be something that you have to disclose, like accidents. Also you could be building towards needing more mechanical work than you would otherwise need for a car of similar age of a similar number of miles. My last Sienna for instance reached absolute zero value when it hit 210,000 miles and needed a new transmission, suspension, Brakes in 10-15,000 miles, engine rebuild in 3-4 months, a bunch of stuff i can't remember, the interior needed redone (for the third and half time)... it just wouldn't have been worth it to fix. And it was only 4 1/2 years old. The car was literally, totaled by the amount of work it needed done.

If you think that putting miles on a car doesn't effect it's value keep in mind that if you put 50,000 miles a year on a car it's only going to last maybe 5 years. If you put 10,000 a year you can get 10-15. That puts you in a situation where your buying 3 times as many cars per year... fascinating math that people seem to ignore.

And the number I had for buying a Sienna new and getting commercial insurance to used it as a taxi only came to bout 50c a mile over 200,000 miles. So once your putting in excess of 30,000+ miles a year your insurance cost per mile does in fact go down substantially.

The first year my actual costs were $1.00 per mile (This is including the purchase price)
The second year my actual costs were 25c per mile (this is no maintenance costs at all just gasoline and insurance)
The third year my actual costs were 35c per mile (my 10 year 100,000 mile warranty is over, stuff needs fixed)
The fourth year my actual costs were 40c per mile (maintenance costs drug my math down) [POS car gets sold for next to nothing]

Averaging out to 50c per mile.

The only year that didn't come out to way under my 4 year average is year numero Uno.


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## RamzFanz (Jan 31, 2015)

Tim In Cleveland said:


> Both the IRS and AAA are giving real costs. You disputers dig baloney out of your butt.


Nope, it's not an average, it's the cost of a fully financed car in it's first 5 years of life. University studies show the same numbers.


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## RamzFanz (Jan 31, 2015)

Mears Troll Number 4 said:


> Until you sell the car you won't know how much it's depreciated to know what it's actually costing you per mile.


Get the KBB resale value at the beginning of the year and again at the end, subtract the new number from the old and divide that by the miles driven, now you know what your lost equity there was by the mile. Unless you're in a 2016 or an expensive car, it won't be anywhere near the AAA number or IRS deduction.



Mears Troll Number 4 said:


> Condition of the interior alone can knock $1000 or more off the value of the car on resale. Heck just knowing the car was used to uber could have a large negative impact on it's value. In the near future it's probobly going to be something that you have to disclose, like accidents. Also you could be building towards needing more mechanical work than you would otherwise need for a car of similar age of a similar number of miles. My last Sienna for instance reached absolute zero value when it hit 210,000 miles and needed a new transmission, suspension, Brakes in 10-15,000 miles, engine rebuild in 3-4 months, a bunch of stuff i can't remember, the interior needed redone (for the third and half time)... it just wouldn't have been worth it to fix. And it was only 4 1/2 years old. The car was literally, totaled by the amount of work it needed done.


Of course condition matters. All of this is considered in the KBB estimated value.



Mears Troll Number 4 said:


> If you think that putting miles on a car doesn't effect it's value keep in mind that if you put 50,000 miles a year on a car it's only going to last maybe 5 years. If you put 10,000 a year you can get 10-15. That puts you in a situation where your buying 3 times as many cars per year... fascinating math that people seem to ignore.


Of course milage matters. All of this is considered in the KBB estimated value.



Mears Troll Number 4 said:


> And the number I had for buying a Sienna new and getting commercial insurance to used it as a taxi only came to bout 50c a mile over 200,000 miles. So once your putting in excess of 30,000+ miles a year your insurance cost per mile does in fact go down substantially.


Yes, because you bought it new, and you _still_ didn't hit the AAA estimate. My point exactly.


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## Dontmakemepullauonyou (Oct 13, 2015)

Tim In Cleveland said:


> 2016 Costs per AAA study
> Couldn't find a nice graphic, but basically:
> Small Sedan: $6,579 (43.8 cents per mile)
> Medium Sedan $8,604 (57.36 cents per mile) <---Most Uber drivers
> ...


Numbers don't lie, people lie, in this case uber drivers lie to themselves to prevent a nervous breakdown.


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## RamzFanz (Jan 31, 2015)

Dontmakemepullauonyou said:


> Numbers don't lie, people lie, in this case uber drivers lie to themselves to prevent a nervous breakdown.


Numbers don't lie, but people use the wrong numbers to lie.


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## Oscar Levant (Aug 15, 2014)

Tim In Cleveland said:


> 2016 Costs per AAA study
> Couldn't find a nice graphic, but basically:
> Small Sedan: $6,579 (43.8 cents per mile)
> Medium Sedan $8,604 (57.36 cents per mile) <---Most Uber drivers
> ...


That's every mile, paid mile or dead mile. So, if paid miles are 50% of total miles, then every paid mile costs the driver double that figure, and compare that to the meter. You are operating at a loss !


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## LAuberX (Jun 3, 2014)

Mears Troll Number 4 said:


> Have you sold the alleged Camry yet?


Yes.

That is why I am certain of the exact cost of .28/mile to drive that car. Not everybody has the same experience, or costs, I am just sharing mine.

That being said, even with my cost being less than the AAA figure there is zero profit driving UberX in Los Angeles with the current rates. I averaged one dead mile for every paid mile, so there is just no "profit" when you take all the actual expenses into account.


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## Oscar Levant (Aug 15, 2014)

LAuberX said:


> I keep solid records. actual cost driving my Camry for Uber .28/mile


Did you deduct depreciation, interest, gas, maintenance, i.e, everything?


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## LAuberX (Jun 3, 2014)

Oscar Levant said:


> Did you deduct depreciation, interest, gas, maintenance, i.e, everything?


Everything. Purchase Price-Sale price= actual vehicle cost+ Tires, Gas, Oil changes, Brakes, Body damage, window tinting, registration, insurance.....

Nothing was "estimated" this was my real world cost of a vehicle used 100% for UberX.


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## Oscar Levant (Aug 15, 2014)

LAuberX said:


> Everything. Purchase Price-Sale price= actual vehicle cost+ Tires, Gas, Oil changes, Brakes, Body damage, window tinting, registration, insurance.....
> 
> Nothing was "estimated" this was my real world cost of a vehicle used 100% for UberX.


The AAA eval was done over 5 years. Come back in ( a total of ) 5 years, do everything, and see what you come up with. 
Of course, you wont be driving that long (if you are smart ) , just sayin' .

But, until then, IRS allows you to deduct 57 cents ( or so ) so your tax bracket can be less that "real world". But, the bad news, given that you are "self-employed" you must pay 100% of the social security tax ( 50% if you were an employee ).


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## renbutler (Jul 25, 2015)

I think some people are having trouble with the term "average."

It's a bell curve -- a small number will have a very low cost, a small number will have a very high cost, and then numbers increase the closer you get to the middle. It means that some people can beat it, and a few can beat the average quite easily, based on location and choices. 

So, yes, some very strategic folks among us can get away with very low per-mile costs.

Math is good.


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## LAuberX (Jun 3, 2014)

Oscar Levant said:


> But, the bad news, given that you are "self-employed" you must pay 100% of the social security tax ( 50% if you were an employee ).


Social Security is a double edged issue. On one hand you want a LARGE earned income to have a good life, and accumulate money in your social security account... if you make say $70,000.00 per year in Taxable income you will end up with around $2,400 per month when you hit SS retirement age.

If you are a broke Uber driver with ZERO taxable income you pay ZERO into social security and end up with peanuts at retirement age.... Oh, I forgot, you will have "savings" from the mileage deduction!! This is really not likely imho... any "savings" are spent just to scrape by.

Social security is based on your taxable or "NET" annual income, no income=Nothing to pay now, and low social security payout when you retire.

In other words, the *self*-*employed* person's *FICA tax rate* for the year 2016 consists of the *Social Security tax* of 12.4% (6.2% + 6.2%) of the first $118,500 of net income plus the Medicare *tax* of 2.9% (1.45% + 1.45%) of every dollar of net income.

Having a low income hurts now, and hurts more later. Real jobs/careers/businesses build real wealth, anybody doing this full time will have little to show for it.


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## Hilljacker (May 15, 2016)

Mears Troll Number 4 said:


> Have you sold the alleged Camry yet?
> 
> Until you sell the car you won't know how much it's depreciated to know what it's actually costing you per mile.
> 
> Condition of the interior alone can knock $1000 or more off the value of the car on resale. Heck just knowing the car was used to uber could have a large negative impact on it's value. In the near future it's probobly going to be something that you have to disclose, like accidents. Also you could be building towards needing more mechanical work than you would otherwise need for a car of similar age of a similar number of miles. My last Sienna for instance reached absolute zero value when it hit 210,000 miles and needed a new transmission, suspension, Brakes in 10-15,000 miles, engine rebuild in 3-4 months, a bunch of stuff i can't remember, the interior needed redone (for the third and half time)... it just wouldn't have been worth it to fix. And it was only 4 1/2 years old. The car was literally, totaled by the amount of work it needed done.


Maybe it's because I grew up in the '70s but getting 210,000 miles out of a car sounds pretty good to me. And is it really worth "absolute zero"? If it runs and drives, it's going to be worth $500 - $1000 at least in my area. Maybe consider donation to a charity and write off the value?


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## renbutler (Jul 25, 2015)

Hilljacker said:


> Maybe it's because I grew up in the '70s but getting 210,000 miles out of a car sounds pretty good to me. And is it really worth "absolute zero"? If it runs and drives, it's going to be worth $500 - $1000 at least in my area. Maybe consider donation to a charity and write off the value?


Heck, I grew up in the '80s, but I remember when reaching 100,000 was a big deal! My first car (a '92 Cavalier) barely made it to 90k when the engine was toast.

My mom just upgraded her 1999 vehicle. I helped her buy a lightly used vehicle with 40k miles. She thought that sounded like a ton of miles, but I told her that these days 40k probably isn't even 25% of the vehicle's useful life. She's 73, and she could live another 20 years with this new vehicle, as little as she drives.


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## Hilljacker (May 15, 2016)

renbutler said:


> Heck, I grew up in the '80s, but I remember when reaching 100,000 was a big deal! My first car (a '92 Cavalier) barely made it to 90k when the engine was toast.
> 
> My mom just upgraded her 1999 vehicle. I helped her buy a lightly used vehicle with 40k miles. She thought that sounded like a ton of miles, but I told her that these days 40k probably isn't even 25% of the vehicle's useful life. She's 73, and she could live another 20 years with this new vehicle, as little as she drives.


Exactly!


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## UsedToBeAPartner (Sep 19, 2016)

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.


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## renbutler (Jul 25, 2015)

UsedToBeAPartner said:


> 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.


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.


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## UsedToBeAPartner (Sep 19, 2016)

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!


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## renbutler (Jul 25, 2015)

UsedToBeAPartner said:


> 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!


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.)


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## LAuberX (Jun 3, 2014)

UsedToBeAPartner said:


> 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.


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!!


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## Danny3xd (Nov 7, 2016)

Cool, LAuber. What manor of engine? 4, 6 cylinder, hybrid?


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## Undermensch (Oct 21, 2015)

LAuberX said:


> 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!


Two accidents in 73k miles?

Wow.

What was you cost if you take those out?


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## LAuberX (Jun 3, 2014)

Undermensch said:


> Two accidents in 73k miles?
> 
> Wow.
> 
> What was you cost if you take those out?


.24 per mile


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## LAuberX (Jun 3, 2014)

Danny3xd said:


> Cool, LAuber. What manor of engine? 4, 6 cylinder, hybrid?


SE 4 cyl


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## CatchyMusicLover (Sep 18, 2015)

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


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## renbutler (Jul 25, 2015)

CatchyMusicLover said:


> Insurance and registration are nessesary if you own a car. Why would you factor those in (unless you talk about gap or commercial insurance)


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.



CatchyMusicLover said:


> 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.


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.


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## UsedToBeAPartner (Sep 19, 2016)

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).


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## Trebor (Apr 22, 2015)

Mears Troll Number 4 said:


> Have you sold the alleged Camry yet?
> 
> Until you sell the car you won't know how much it's depreciated to know what it's actually costing you per mile.
> 
> ...


How much is your taxi lease? I am sure your taxi lease costs more than the actual car.


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## renbutler (Jul 25, 2015)

UsedToBeAPartner said:


> 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.





renbutler said:


> 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.)


I guess you weren't that interested in seeing the math. 

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


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## Trebor (Apr 22, 2015)

Tim In Cleveland said:


> 2016 Costs per AAA study
> Couldn't find a nice graphic, but basically:
> Small Sedan: $6,579 (43.8 cents per mile)
> Medium Sedan $8,604 (57.36 cents per mile) <---Most Uber drivers
> ...


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.


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## Trebor (Apr 22, 2015)

Mears Troll Number 4 said:


> Have you sold the alleged Camry yet?
> 
> Until you sell the car you won't know how much it's depreciated to know what it's actually costing you per mile.
> 
> ...


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.


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## elelegido (Sep 24, 2014)

Mears Troll Number 4 said:


> Have you sold the alleged Camry yet?


I believe him that it is, indeed, a Camry.


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## renbutler (Jul 25, 2015)

Trebor said:


> 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.


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...



Trebor said:


> Oh, and that used car will have cheaper parts.


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.


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## Trebor (Apr 22, 2015)

renbutler said:


> 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.
> 
> ...


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.


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## Sub Guy (Sep 22, 2016)

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.


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## Fuzzyelvis (Dec 7, 2014)

LAuberX said:


> Everything. Purchase Price-Sale price= actual vehicle cost+ Tires, Gas, Oil changes, Brakes, Body damage, window tinting, registration, insurance.....
> 
> Nothing was "estimated" this was my real world cost of a vehicle used 100% for UberX.


I did this for a car I had for about 7 years. Ford Focus bought new. 146,000 miles. I got a good price for "selling" it as it was totaled in a wreck and the insurance paid more than I think I could have sold it for. I included everything and my costs per mile were 20 something cents. I'm not at home so can't remember exactly. That did include a $3000 repair after the warranty expired and about $1500 in other repairs (not maintenance) and all maintenance and gas, tires, etc.

I only paid $13,000 something for the car and paid it off in 3 years, btw.

The problem is that was a very cheap car, bought in 2005. But it also had more major repairs than I would have expected. I don't expect the 2015 car I have now to be as "cheap" per mile as far as the up front cost and financing, although I'm hoping it will do better when it comes to major repairs. The thing is, until I sell this one, I won't know for sure. And I'm hoping to sell it, rather than wreck it.

I delivered pizza in the Focus but hardly anyone ever rode in it with me besides my dogs sometimes. I always keep seat covers and an extra dog seat cover for that and the interior was pristine when it was wrecked. It looked almost new. It did not smell of pizza (the smell is often from the bags--don't let them touch the seats). I don't see that being the case with any car used for uber long term. Although I do have seat covers my dogs are much better at not scratching the interior than most pax. Ubering will reduce the blue book rating on your car by a step, for sure.

Most people underestimate major repairs when they try to figure out actual costs IMO. Thet also don't factor in possible high gas prices. It was over $4.00 a gallon here in Houston in 2008. May not sound like a surprise to those in other areas, but that's the highest it's ever been here. Always assume the worst.

But at 30 cents a mile and half dead miles, there's little profit here. And per hour you'll end up with much less than minimum wage at base rates.


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## Danny3xd (Nov 7, 2016)

renbutler said:


> 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.
> 
> ...


Exactly, Ren! My Prius has a qurter of a million miles on her and is expected to get another 200K if not 3. I paid 3K$ and another 3 for a battery. But for 6 grand, it is still like brand new with zero problems. Oh, needs new brake shoes for the rear. $24 DIY job. And it is the first set! (The brakes rarely make physical contact. The car is slowed generating electricity.)

A lot of the thinking comes from when you were lucky to get 100K out of a car and it was braking down every other week. Ya get 200K out of cheap cars now. Buying a new car is a bad move money wise. It's hard to buy a used Prius from an owner as they are normally traded into dealers. Even so, you can get a prius with 3 or 400k miles left to go for 10 or 15k$

That get 45 MpG AVG and ya change the oil ever 5k miles!

LOL, all that to say "I agree, Ren" snork


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