Author Topic: Cost to drive further to work  (Read 2165 times)

Merrie

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Cost to drive further to work
« on: December 30, 2015, 10:44:19 AM »
I've been offered a promotion. Only catch is, it's in a city 60 miles away. I doubt we'll move, at least not at first; if I can't get back into a comparable position in the local area within a year or two, we may think about it then, but it's reasonably likely that could happen. So I am trying to figure out how much it costs me to drive that far.

Right now I work 80 hours per pay period spread out over 10 shifts. Since I work at varying locations right now, I have an average commuting time of 20-30 minutes and probably an average commuting distance of 10-15 miles, but it can be up to 40-50 miles sometimes. In the new position I'll work 84 hours per pay period but spread out over 9 shifts--which takes one day's worth of driving out of the equation.

I drive a 12-year-old Corolla which is in good shape. It gets about 38 MPG highway. I'm basically trying to calculate the cost of the extra miles on my vehicle and I'm having trouble with the calculators I find online. We got the car for free from a family member, though we'll have to pay for its replacement eventually, so I'm not sure how to calculate acquisition cost/depreciation. And I'd own the car whether or not I drove to this further location, so I would have to pay the same in taxes and insurance.

I would gross $400 more every 2 weeks and also be eligible for a bonus in the $3k range.

Any thoughts?

(In this post I'm not choosing to focus on the intangibles of working longer shifts to work fewer days, working at one store vs. multiple stores, or the added *time* involved in commuting, though I am aware of that time and it factors into my decision.)

ketchup

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Re: Cost to drive further to work
« Reply #1 on: December 30, 2015, 11:01:23 AM »
$400 / (9 shifts * 120 miles round trip) = 37 cents per mile

That's probably not much more than a 12-year-old Corolla costs to drive (my two El-Cheapo 90s cars cost between 18 and 22 cents all-in per mile to drive).  Let's say your cost is 25 cents/mile so you'd "net" 12 cents/mile.  If you drive 60mph the entire way, that takes one hour and "nets" you $7.20 before taxes. 

So in terms of dollars and hours, it would be kind of like picking up a second, 10 hour per week minimum-wage job of driving your car that you couldn't quit without leaving your main job, while "running down the clock" faster on your Corolla.

I would not do that.

NoStacheOhio

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Re: Cost to drive further to work
« Reply #2 on: December 30, 2015, 11:02:12 AM »
How much life do you think is left in your Corolla?

Merrie

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Re: Cost to drive further to work
« Reply #3 on: December 30, 2015, 11:12:00 AM »
Let's say your cost is 25 cents/mile so you'd "net" 12 cents/mile.

The cost per mile is what I'm really trying to figure out here. I'm looking for some math help on calculating the depreciation/cost to operate. I am familiar with the logic behind the other calculations. There are a lot of other factors in play here that I'm considering.

How much life do you think is left in your Corolla?

I think it's good for a while. I expect to drive it for at least another half-decade.

ketchup

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Re: Cost to drive further to work
« Reply #4 on: December 30, 2015, 01:42:41 PM »
Let's say your cost is 25 cents/mile so you'd "net" 12 cents/mile.

The cost per mile is what I'm really trying to figure out here. I'm looking for some math help on calculating the depreciation/cost to operate. I am familiar with the logic behind the other calculations. There are a lot of other factors in play here that I'm considering.

How much life do you think is left in your Corolla?

I think it's good for a while. I expect to drive it for at least another half-decade.
The cost to operate a car is composed of maintenance/repairs, fuel, insurance, depreciation, and registration/etc.  Here are my numbers for two cars over about 60,000 combined miles.

Maintenance/repairs: $0.03-$0.06/mile  This is with me doing my own work; probably about double it for me if you farm that out.
Fuel: $0.07-$0.15/mile One car gets about 20MPG, the other 45MPG.  Gas is cheap right now ($2.09 near me), so both numbers are falling as more miles are piled on.
Insurance: $0.02-0.03/mile Largely outside of your control; just make sure you're not overpaying.
Depreciation: $0.00-$0.01/mile  Cheap cars bought for almost nothing, still worth a similar almost nothing.
Registration/etc.: $0.01/mile  Basically out of your hands.
Total: $0.18-0.22/mile

Being a bit conservative, here's my best guess at your numbers:

Maintenance/repairs: $0.06/mile  Assuming a reasonably reliable car (Toyota) but without doing your own work.  Check your records if you have them to calculate a real number.
Fuel: $0.06/mile $2.09 / 38MPG
Insurance: $0.03/mile Made up number, varies with person/location.
Depreciation: $0.04/mile? Just spitballing here with a guess that the car is worth about $3500-4000 and has 100,000 miles of life left in it.  Your acquisition cost may have been $0, but deprecation is simply current value over expected lifespan.
Registration: $0.01/mile Made up number, varies with person/location.

That adds up to about $0.20/mile so my numbers that I threw out in the other post are pretty close.  I'd call it $0.25/mile just in case gas decides to double in price again, or your insurance goes up, or other such external factors.

Gronnie

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Re: Cost to drive further to work
« Reply #5 on: December 30, 2015, 07:52:33 PM »
$400 / (9 shifts * 120 miles round trip) = 37 cents per mile

That's probably not much more than a 12-year-old Corolla costs to drive (my two El-Cheapo 90s cars cost between 18 and 22 cents all-in per mile to drive).  Let's say your cost is 25 cents/mile so you'd "net" 12 cents/mile.  If you drive 60mph the entire way, that takes one hour and "nets" you $7.20 before taxes. 

So in terms of dollars and hours, it would be kind of like picking up a second, 10 hour per week minimum-wage job of driving your car that you couldn't quit without leaving your main job, while "running down the clock" faster on your Corolla.

I would not do that.

You forgot to subtract out the miles that OP is already driving for his job.

Merrie

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Re: Cost to drive further to work
« Reply #6 on: December 30, 2015, 08:53:22 PM »
I figured registration and insurance at zero since those expenses aren't dependent on whether I drive more or fewer miles and I will own the car either way.

Thanks for the detailed breakdown ketchup.

I'm having a hard time with this one. In my current position I float from location to location and my schedule varies all the time and I work with all different people. All of this stuff stresses me out a lot and I've had no luck getting into a set position. When I subtract out the increased commute costs for this new position, I feel like I just about break even (any extra money seems that it needs to be banked to offset the cost of a new car) and am working more hours, but I'm also going to be with the same team all the time, have a set schedule, build my resume, win brownie points with the DM, and increase my likelihood of getting a position I want closer to home.

alsoknownasDean

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Re: Cost to drive further to work
« Reply #7 on: December 31, 2015, 12:51:38 AM »
Are you able to take public transport between the two locations?