Reply to: Transport/petrol allowance

[ASB]

All irrelevant. You have a car, it costs £x to run, all you're doing is reclaiming the proportion that you dedicate to work usage. If you weren't doing that work mileage then you wouldn't be doing the mileage anyway.

HTH. BIDI

It's moot because the amaps rate is what it is.

But in terms of the cost ascribing the proportion is reasonable (and likely to be somewhat higher than the amaps rate). But so is applying the incremental cost (which is likely to be more closely aligned).

They are both reasonable ways to view it.

[psychocandy]

Capped mileage, the manufacturers don't cap, only some of the lesser finance companies restrict mileage. VW is limited to 999,000 from memory..

Carefully purchased a lease car isn't a bad choice. Each additional mile is 7.2p max with most VW brands which given the 25p mileage allowance covers most of the damage....

Yes. Mrs PC has got a lease car - she drives a lot in her job. Of course, if she does more business mileage and exceeds the limit then its only 8p a mile but the 45p more than covers it (even with petrol on top).

[LondonManc]

All irrelevant. You have a car, it costs £x to run, all you're doing is reclaiming the proportion that you dedicate to work usage. If you weren't doing that work mileage then you wouldn't be doing the mileage anyway.

HTH. BIDI

Doesn't help the discussion at all, but thanks anyway.

[malvolio]

All irrelevant. You have a car, it costs £x to run, all you're doing is reclaiming the proportion that you dedicate to work usage. If you weren't doing that work mileage then you wouldn't be doing the mileage anyway.

HTH. BIDI

[LondonManc]

What about depreciation/repayments/interest? They are also fairly fixed.
If a car depreciates 60% over 3 years, that doesn't change wildly based on mileage.

Mileage can make one hell of a difference, especially depending upon the make/model of the car; even more so if it's a petrol engine.

In terms of repayments/interest, that's a financing of the purchase issue. Again, I take it as a fixed, given that I was going to buy the car anyway. If the car is going to cost £30k, what mileage I put on it will mainly be driven by my decision to drive it "into the ground" or not; as such, the train v car decision comes into play then.

[WTFH]

I'd take the fixed costs out - MOT, Road Fund, Insurance - I incur those whatever happens. Then split the rest on a work v personal mileage ratio.

What about depreciation/repayments/interest? They are also fairly fixed.
If a car depreciates 60% over 3 years, that doesn't change wildly based on mileage.

[LondonManc]

True, so you have to work out the overall annual cost, then decide do you divide it out evenly across the number of miles you do in a year (no matter the purpose), or do you divide it down over the number of days per year, or some other standard.
Personally I go by miles per year.

I'd take the fixed costs out - MOT, Road Fund, Insurance - I incur those whatever happens. Then split the rest on a work v personal mileage ratio.

[WTFH]

Except you're paying road fund licence and insurance whether you use it for business or not.

True, so you have to work out the overall annual cost, then decide do you divide it out evenly across the number of miles you do in a year (no matter the purpose), or do you divide it down over the number of days per year, or some other standard.
Personally I go by miles per year.

[eek]

The sting in the tail is the capped mileage which doesn't always suit the way we work. The extra per mile isn't a lot but can be be a pain if you get caught on a gig with a long commute just at the wrong time.

Capped mileage, the manufacturers don't cap, only some of the lesser finance companies restrict mileage. VW is limited to 999,000 from memory..

Carefully purchased a lease car isn't a bad choice. Each additional mile is 7.2p max with most VW brands which given the 25p mileage allowance covers most of the damage....

[LondonManc]

Its not hard to work it out. Consider partners family car.

over 3 years and 35,000 miles.

fuel 5,750
servicin 900
Ins 1100
tyres 900
depreciation 8,000
road tax 600

Thats about 50p.

Now consider mine. In the last 2 years I had covered 14k miles. The 25k car has depreciated approx 9k. In the order of 1 per mile overall. Insurance etc about the same. Fuel about half.

Lower mileage tends to increase cost per mile. Higher decreases it (no tulip sherlock)

Sure run around in a shed its cheaper. A mid range car with fairly limited mileages ends up pretty expensive.

Except you're paying road fund licence and insurance whether you use it for business or not.

[northernladuk]

It's why leasing a car can quickly make economic sense.... The depreciation, road tax and interest are built into the monthly fee...

Isn't the rule lease things that depreciate only own things that may appreciate

The sting in the tail is the capped mileage which doesn't always suit the way we work. The extra per mile isn't a lot but can be be a pain if you get caught on a gig with a long commute just at the wrong time.

[northernladuk]

Its not hard to work it out.

It is for PC.

[WTFH]

Here's the AA's figures for a petrol car in 2014...


http://www.theaa.com/resources/Docum...petrol2014.pdf

[ASB]

£1 a mile!!! Like to see how thats worked out then. Unless you've got a ferrari.

Its not hard to work it out. Consider partners family car.

over 3 years and 35,000 miles.

fuel 5,750
servicin 900
Ins 1100
tyres 900
depreciation 8,000
road tax 600

Thats about 50p.

Now consider mine. In the last 2 years I had covered 14k miles. The 25k car has depreciated approx 9k. In the order of 1 per mile overall. Insurance etc about the same. Fuel about half.

Lower mileage tends to increase cost per mile. Higher decreases it (no tulip sherlock)

Sure run around in a shed its cheaper. A mid range car with fairly limited mileages ends up pretty expensive.

[eek]

The AA worked it out at 64p a mile in 2004-ish and I doubt it's gone down. But start from a £20k car and look at your lost interest on capital, depreciation, interest repayments, insurance, servicing and consumables replacement, fuel, parking....

It's why leasing a car can quickly make economic sense.... The depreciation, road tax and interest are built into the monthly fee...

Isn't the rule lease things that depreciate only own things that may appreciate