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If you already have a car, it only costs about 25cents/mile at the margin. Half the cost is just depreciation from buying it.

by krsrhe 7y ago

lotsofpulp 7y ago
Most people in the US don’t have the option of going without a car, so you have to amortize the cost of obtaining a new vehicle over the total miles driven of current vehicle.
- username444 7y ago
  They do have an option, but they choose a lifestyle that consequently requires one. You choose where you live. You choose what job you take. You choose to have children. Etc.
hourislate 7y ago
The cost is more than 25 cents/mile. There is a lot to factor in. Typically when you are a salaried employee and use your vehicle for business, this mileage allowance is on top of your pay. She is not earning anything other than what Instacart pays. By the time it's all said and done, she'll be lucky if to brake even. Maybe that's enough for her. Here is what he IRS has determined the cost of driving is. I would imagine the costs in CA are greater due to gasoline prices, traffic, and general cost of living. https://www.irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2019 https://www.irs.gov/newsroom/irs-issues-standard-mileage-rat... 54.5 cents per mile The Internal Revenue Service (IRS) has issued the 2018 optional standard mileage rates and beginning on January 1, 2018, the standard mileage rates for the use of a car, van, pickup or panel truck will be: 54.5 cents per mile for business miles driven (up from 53.5 cents in 2017)Dec 14, 2017 Includes gas, oil, repairs, tires, insurance, registration fees, licenses, and depreciation (or lease payments) attributable to the portion of the total miles driven that are business miles.
- Dylan16807 7y ago
  > Includes gas, oil, repairs, tires, insurance, registration fees, licenses, and depreciation (or lease payments) attributable to the portion of the total miles driven that are business miles. "Attributable to the portion" sounds like you divide it by total miles, which is going to give you a number that's bigger than marginal cost, and possibly a lot bigger. For some cars, doubling the miles might only increase non-fuel costs 20%.
thechao 7y ago
I was thinking about this the other day. My Kia Optima tells me I’ve averaged 25mph over the last 120k miles. That means I’ve gotten about 4800 hours of life out of the car. If I take care of the car, I have an easy 3200 more hours. This would give me ~8000 operating hours. Acquisition was 15k$ (used) and yearly maintenance will probably average to ~100$/300hrs. So total life cost of the car will be ~18k$/8000hrs. That gives me an amortized cost of 2.25$/hour. Mind you, I drive a lot of easy 55mph, in central Texas.
- purplezooey 7y ago
  we should put hour meters on cars like we do on boats
  - RandomBacon 7y ago
    My pickup truck has one, I was pleasantly-surprised to see it. You're right though, all cars should have it. Cars idleing for hours puts wear-and-tear on the engine that isn't evident by the odometer.

If you already have a car, it only costs about 25cents/mile at the margin. Half the cost is just depreciation from buying it.

by krsrhe 7y ago

If you already have a car, it only costs about 25cents/mile at the margin. Half the cost is just depreciation from buying it.

lotsofpulp 7y ago

Most people in the US don’t have the option of going without a car, so you have to amortize the cost of obtaining a new vehicle over the total miles driven of current vehicle.

username444 7y ago
They do have an option, but they choose a lifestyle that consequently requires one. You choose where you live. You choose what job you take. You choose to have children. Etc.

hourislate 7y ago

The cost is more than 25 cents/mile. There is a lot to factor in. Typically when you are a salaried employee and use your vehicle for business, this mileage allowance is on top of your pay. She is not earning anything other than what Instacart pays. By the time it's all said and done, she'll be lucky if to brake even. Maybe that's enough for her. Here is what he IRS has determined the cost of driving is. I would imagine the costs in CA are greater due to gasoline prices, traffic, and general cost of living. https://www.irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2019 https://www.irs.gov/newsroom/irs-issues-standard-mileage-rat... 54.5 cents per mile The Internal Revenue Service (IRS) has issued the 2018 optional standard mileage rates and beginning on January 1, 2018, the standard mileage rates for the use of a car, van, pickup or panel truck will be: 54.5 cents per mile for business miles driven (up from 53.5 cents in 2017)Dec 14, 2017 Includes gas, oil, repairs, tires, insurance, registration fees, licenses, and depreciation (or lease payments) attributable to the portion of the total miles driven that are business miles.

Dylan16807 7y ago
> Includes gas, oil, repairs, tires, insurance, registration fees, licenses, and depreciation (or lease payments) attributable to the portion of the total miles driven that are business miles. "Attributable to the portion" sounds like you divide it by total miles, which is going to give you a number that's bigger than marginal cost, and possibly a lot bigger. For some cars, doubling the miles might only increase non-fuel costs 20%.

thechao 7y ago

I was thinking about this the other day. My Kia Optima tells me I’ve averaged 25mph over the last 120k miles. That means I’ve gotten about 4800 hours of life out of the car. If I take care of the car, I have an easy 3200 more hours. This would give me ~8000 operating hours. Acquisition was 15k$ (used) and yearly maintenance will probably average to ~100$/300hrs. So total life cost of the car will be ~18k$/8000hrs. That gives me an amortized cost of 2.25$/hour. Mind you, I drive a lot of easy 55mph, in central Texas.

purplezooey 7y ago
we should put hour meters on cars like we do on boats
- RandomBacon 7y ago
  My pickup truck has one, I was pleasantly-surprised to see it. You're right though, all cars should have it. Cars idleing for hours puts wear-and-tear on the engine that isn't evident by the odometer.