3 ms·
So, doing some napkin math, assuming the numbers provided by Spooky23 and the baddox are correct: 30/hr 40 hrs/week = $1200 baddox assumed that accounted for g
by ensignavenger 12y ago
So, doing some napkin math, assuming the numbers provided by Spooky23 and the baddox are correct:
30/hr 40 hrs/week = $1200
baddox assumed that accounted for gas, but not depreciation/maintenance.
Depreciation 30/week (the high end from Spooky24) 1200-30 = 1170.
Now, there may be some maintenance. A full set of break pad for a 2010 Ford Escape (Random vehicle, yours may vary) cost 100 dollars at Autozone- these are the expensive ones that appear to have a lifetime warranty- cheaper ones are half that much. I checked, and the lifetime warranty on the expensive ones does appear to cover commercial use (the warranty on the cheap ones explicitly does not, but the expensive ones do not exclude commercial use.)
I don't know how often your breaks wear out, but lets say you put the expensive ones on every month- and that you don't get free pads because of the warranty (Thought it appears that you should). A break job should only take an hour or two once you have done it a few times. Pretty simple stuff. Change the oil while your at it- another $20. (EDIT: I just realized that some new vehicles use more expensive synthetic oil- so you may have to double or triple this number, but you also may not have to change your oil as often, so it may work out about the same) $120 plus 2 hours of your time each month. 120/4 = 30.
1170 - 30 = 1140.
Your going to need new tires. Lets say you replace them every other month. Walmart lists them at around $100 a piece for a 60,000 mile tire. Your probably not going to get that many miles, but it should be at least 40,000. Again, I don't know how much driving your doing, so lets say you replace them every 3 months. It would probably be in your interest to do it yourself if doing it that often. But lets say you pay someone to do it so you don't have to buy and store the tools and deal with it. $20 per tire- (20 + 100) x 4 = 480, lets just say $500 every 3 months.
500/3/4 = $42. 1170-42= 1128.
Now, there will be other misc maintenance and repairs. Lets say $100 per week- I think that is high. Your vehicle isn't that old and you are keeping it well maintained, staying up on the simple things before they become major. We have already figured depreciation, so your replacing the vehicle when it is worn out.
1128-100 = $1028 per week after all expenses are accounted for.
1128/40 = $28 per hour. But you will have to pay self employment taxes. That will cost you a few extra bucks an hour. But you are still making significantly more than 15/hour.
Unless I am missing something. Please feel free to contribute your own numbers to my napkin math.
- maxerickson 12y agoThe quoted depreciation was $30 per day, you've used it per week. A car getting tens of thousands of miles a year is absolutely depreciating at a rate of thousands of dollars a year, but perhaps not the $10,000 implied there (but enough miles on a $40,000 vehicle gets you there quick). There's no way that brake pads come with a warranty against normal use (it would only happen by regulatory requirement and then it should apply to the maker of the car). Autozone also explicitly disclaims commercial use in the warranty for here (but maybe that's different in California).
- ensignavenger 12y agoThanks- my bad. A $40,000 vehicle depreciating by 10,000 year day would mean the vehicle would be worthless in 4 years- not even scrap value. I have a hard time believing that. At an average speed of 30 mph for 40 hours a week, that is 249,600 miles over the 4 years. Which is a lot, especially in city traffic. Still, that takes us down to 21.20 per hour. So if you are really depreciating that much over time, you are still doing better than $15 per hour. But maybe not too much more. I would recommend not buying a $40,000 car for this purpose- get something that is a year or 3 old and that has already depreciated a good bit. That should massively reduce your depreciation over the 4 years or so that you own the vehicle. :) (I'm not sure how Uber and Lyft define "late model" so that may affect this strategy some. I think anything less than 10 years old is late model.)
- MoOmer 12y agoAs someone who ran my fathers trucking company after he passed away, I'd say you're missing quite a few things. A good mileage interval guide would show what you can expect (minor) to repair/replace every once in a while. I set up an example one on edmunds.com for a Toyota Avalon with 0 miles: http://www.edmunds.com/car-maintenance/results.html?year=2013&make=&model=&styleId=200442096&engCode=6VNAG3.5&transCode=AUTOMATIC&zip=55402&mileage=0 http://www.edmunds.com/car-maintenance/results.html?year=201... There are other general things that you should watch out for [0], and plenty that aren't listed or may just happen. [0] http://www.carsdirect.com/car-maintenance/a-routine-car-maintenance-schedule-based-on-engine-mileage http://www.carsdirect.com/car-maintenance/a-routine-car-main...