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Depreciation is a large cost as well. The IRS sets a standard rate of 58 cents/mile for deduction of vehicle-related expenses. There’s obviously a wide range o
by mikeash 7y ago
Depreciation is a large cost as well.
The IRS sets a standard rate of 58 cents/mile for deduction of vehicle-related expenses. There’s obviously a wide range of actual costs, but that’s in the ballpark for an all-inclusive amount. If you average 20MPH then you’ll exceed $10/hr.
- acchow 7y agoThe IRS numbers are very generous.
- mikeash 7y agoThey almost perfectly match the TCO numbers from AAA. They show an average of $8,849/year at 15,000 miles/year, which is 59 cents/mile. The cheapest vehicle type they list is small sedans, which are $6,777/year or 45 cents/mile. https://newsroom.aaa.com/auto/your-driving-costs/ https://newsroom.aaa.com/auto/your-driving-costs/ It seems large because we aren’t used to looking at TCO per mile, and only think about the cost of fuel.
- acchow 7y agoI meant 59 cents/mile is generous for estimating your Uber driving costs. The AAA average includes pickup trucks, which hopefully you wouldn't be using for Uber. Edmunds puts the TCO for 5 years (includes insurance and gas) for a Prius @15,000 miles/year at $30,600. That is 40.8 cents/mile. 59c is 45% higher. (This assumes you start with a brand new Prius; you may optimize better as an Uber driver)