Author Topic: Mileage: Is this a good deal or not?  (Read 1119 times)

PharmaStache

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Mileage: Is this a good deal or not?
« on: January 14, 2016, 11:52:28 AM »
I'm interested in finding out if the amount my work pays me towards mileage truly covers my vehicle operating costs.  I'm not sure though how to factor in vehicle depreciation, maintenance, tires, etc. 

Here's the basics:
I drive a 2013 Honda Civic that is currently getting 7L/100km (all highway driving)
195 km/week x 48 weeks (accouting for vacation weeks) = $9360 km/yr
I get paid $0.43/km.  Gas is 91c/L. 
I am calculating a fuel cost of $596/year for gas.
I get $4000/year in mileage amounts.

$4000- $596= $3404 (non-gas costs). 

How do I figure out if this is a good deal or not?

seattlecyclone

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Re: Mileage: Is this a good deal or not?
« Reply #1 on: January 14, 2016, 12:06:17 PM »
It's certainly a better deal than not getting reimbursed for mileage, that's for sure!

In general the way to optimize these things is to get a vehicle that is as inexpensive, efficient, and reliable as possible. Honda Civics are pretty efficient and reliable. A car that new is still going to have a reasonably high value that will be decreasing with every trip you take. You could probably do a bit better by selling it and buying an older vehicle, but otherwise you're doing pretty well.

PharmaStache

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Re: Mileage: Is this a good deal or not?
« Reply #2 on: January 15, 2016, 08:57:53 AM »
It's certainly a better deal than not getting reimbursed for mileage, that's for sure!

Ha!  You're right about that.