Joined
·
4,953 Posts
I read a lot on here about costs per mile etc. They make a good case against Uber and I'm not debating whether it's profitable or not in general, but YOUR results should not rely on THEIR numbers without understanding them.
Cost per mile includes the purchase, use, and upkeep of an average vehicle. Those costs swing widely from vehicle to vehicle ($.46 to $.65). What isn't discussed in these threads are those are for brand new vehicles in their first 5 years of life.
"The 'Your Driving Costs' study employs a proprietary AAA methodology to analyze the cost to own and operate a vehicle in the United States. Variable operating costs considered in the study include fuel, maintenance and repair, and tires. Fixed ownership costs factored into the results include insurance, license and registration fees, taxes, depreciation and finance charges. Ownership costs are calculated based on the purchase of a new vehicle that is driven over five years and 75,000 miles. Your actual operating costs may vary. See AAA's 2013 'Your Driving Costs' brochure for a list of vehicles and additional information on the underlying criteria used in the study."
You can GREATLY reduce these costs by understanding them and controlling them. We all know the greatest depreciation of a vehicle is in the first 5 years. When you drive from the dealership parking lot to the road, you've just lost thousands of dollars. The obvious answer is one I've known and used for years, always buy used within 3 years of new and 30,000 miles, always, or if you simply have to have new, drive it until it's dead and milk every mile out of it.
So, I own a 2008 KIA Sedona Mini-Van with 80,000 miles. I started with Uber yesterday. The current highest (private party sale) value of my van is $5,494. THAT is the amount I would use when determining depreciation per mile. That is the absolute most I could possibly lose on depreciation even if I milk 300,000 miles out of it. Most other costs like gas, taxes, and tires are calculable based on the miles.
The other numbers per mile used on here are based on the same vehicle NEW at $27,359. Using that would be wildly inaccurate.
So if I drive this van 100,000 miles for uber and it is dead and has to be replaced, that's $.05 a mile depreciation. That's my base, not new in the first 5 years.
The costs also go down every mile you drive. The more you drive, the cheaper it is to own and operate. This is because set costs like taxes, registration fees, and insurance are not based on miles so they are driven down by more miles.
All I'm saying here is when members of this forum use the tax deduction base rates, that doesn't take any of this into account. IF you're SMART, the costs can be a small fraction of that. Personally I buy used fleet vehicles. They are systematically well maintained and carefully driven. They eat the massive depreciation at the beginning of it's life and I enjoy the low depreciation for the rest of it's life. But for Uber, I would go open market used and just do my due diligence. This is because for $5,000 cash, you can get a perfectly good uber vehicle and destroy the per mile costs.
Other ways to drive down costs? Join a car wash monthly club. Clean your car every day for a dollar a day or less. Use clubs and discounts for oil changes and other costs. Uber even has discounts for drivers on their site. Use them or find better ones. Do oil changes in the mornings when companies discount the base even more so you are double dipping the discounts. Adding a car to an insurance policy with multiple cars can be cheaper than a stand alone policy. Don't speed. Don't jack rabbit start. Pay cash for the vehicle. Don't sit in an idling car waiting for a ping. Use websites to find the cheapest gas in your area.
What is your actual cost per mile? That depends on you and the decisions you make, it could be AS HIGH as they often say on here, but it sure isn't usually, and it can be easily controlled.
Cost per mile includes the purchase, use, and upkeep of an average vehicle. Those costs swing widely from vehicle to vehicle ($.46 to $.65). What isn't discussed in these threads are those are for brand new vehicles in their first 5 years of life.
"The 'Your Driving Costs' study employs a proprietary AAA methodology to analyze the cost to own and operate a vehicle in the United States. Variable operating costs considered in the study include fuel, maintenance and repair, and tires. Fixed ownership costs factored into the results include insurance, license and registration fees, taxes, depreciation and finance charges. Ownership costs are calculated based on the purchase of a new vehicle that is driven over five years and 75,000 miles. Your actual operating costs may vary. See AAA's 2013 'Your Driving Costs' brochure for a list of vehicles and additional information on the underlying criteria used in the study."
You can GREATLY reduce these costs by understanding them and controlling them. We all know the greatest depreciation of a vehicle is in the first 5 years. When you drive from the dealership parking lot to the road, you've just lost thousands of dollars. The obvious answer is one I've known and used for years, always buy used within 3 years of new and 30,000 miles, always, or if you simply have to have new, drive it until it's dead and milk every mile out of it.
So, I own a 2008 KIA Sedona Mini-Van with 80,000 miles. I started with Uber yesterday. The current highest (private party sale) value of my van is $5,494. THAT is the amount I would use when determining depreciation per mile. That is the absolute most I could possibly lose on depreciation even if I milk 300,000 miles out of it. Most other costs like gas, taxes, and tires are calculable based on the miles.
The other numbers per mile used on here are based on the same vehicle NEW at $27,359. Using that would be wildly inaccurate.
So if I drive this van 100,000 miles for uber and it is dead and has to be replaced, that's $.05 a mile depreciation. That's my base, not new in the first 5 years.
The costs also go down every mile you drive. The more you drive, the cheaper it is to own and operate. This is because set costs like taxes, registration fees, and insurance are not based on miles so they are driven down by more miles.
All I'm saying here is when members of this forum use the tax deduction base rates, that doesn't take any of this into account. IF you're SMART, the costs can be a small fraction of that. Personally I buy used fleet vehicles. They are systematically well maintained and carefully driven. They eat the massive depreciation at the beginning of it's life and I enjoy the low depreciation for the rest of it's life. But for Uber, I would go open market used and just do my due diligence. This is because for $5,000 cash, you can get a perfectly good uber vehicle and destroy the per mile costs.
Other ways to drive down costs? Join a car wash monthly club. Clean your car every day for a dollar a day or less. Use clubs and discounts for oil changes and other costs. Uber even has discounts for drivers on their site. Use them or find better ones. Do oil changes in the mornings when companies discount the base even more so you are double dipping the discounts. Adding a car to an insurance policy with multiple cars can be cheaper than a stand alone policy. Don't speed. Don't jack rabbit start. Pay cash for the vehicle. Don't sit in an idling car waiting for a ping. Use websites to find the cheapest gas in your area.
What is your actual cost per mile? That depends on you and the decisions you make, it could be AS HIGH as they often say on here, but it sure isn't usually, and it can be easily controlled.
