3 ms·
Are you certain your profit numbers include an accurate assessment of the long term maintenance costs and reduction in vehicle resale value you are incurring in
by yodon 9y ago
Are you certain your profit numbers include an accurate assessment of the long term maintenance costs and reduction in vehicle resale value you are incurring in connection with the miles driven? If not, as the original paper described, then you are unknowingly taking out a series of small loans on the value of your car.
- ghaff 9y agoThe original paper actually used a value of $0.30/mile for vehicle cost. This squares pretty well with renting a car from Hertz intended for this purpose (about $200/wk unlimited mileage/insurance) and adding about $0.10/mile for gas. (Obviously Hertz can buy and maintain cars for less than an individual. On the other hand, they need to make a profit on the rental.)
- dwild 9y agoI did rent a car once for a working trip my SO had. We got out of it with a 40$ profit for a trip of about 600 km (yes gas included). For sure that renter include depreciation cost (I have never seen a car with them that had more than 150 000 km).