I'm trying to work out if the 40p tax free rate per mile actually covers the use of the car in a company, I've worked out the pence per mile, but I need to work out the wear and tear figures and factor those in as well, so I need to know, or be given a link to where I might find the figures for the life expectancy of the clutch/brakepads/etc on a Freelander 02 model.
Car ownership cost per mile
- Thread starter PiKe
- Start date
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
Very hard to say but I'd work it out like this:
Clutch, 100k miles, £400 = £0.004 per mile
Brake pads, 20k miles, £100 fitted? = £0.005 per mile
Tyres, say a full set on average every 30k, £400 = £0.013 per mile
Fuel @ 30mpg average @ £1.15 a litre = £0.17 per mile
We'll ignore road tax becuase its fixed, and insurance is also fixed. CBA to calculate depreciation. All that added together gives you a cost of just under 20p a mile IIRC?
Clutch, 100k miles, £400 = £0.004 per mile
Brake pads, 20k miles, £100 fitted? = £0.005 per mile
Tyres, say a full set on average every 30k, £400 = £0.013 per mile
Fuel @ 30mpg average @ £1.15 a litre = £0.17 per mile
We'll ignore road tax becuase its fixed, and insurance is also fixed. CBA to calculate depreciation. All that added together gives you a cost of just under 20p a mile IIRC?
For comparison, have worked it out for my car as well:
Tyres over 30k = 2 sets of rears @ £300 a set + 1 set of fronts @ £220 a set = £820 = 0.027 per mile
Brake pads, say a full set every 30k on average @ £300 fitted = 0.01 per mile
Clutch - 150k miles (assuming mostly long trips) @ £600 fitted = 0.004 per mile
Servicing..
Over the space of 60k you'd need 2 oil services @ £120, an Inspection 1 @ £220 and an Inspection 2 @ £300 = £760 = £0.012 per mile
Fuel..
30mpg average on long runs and out of town stuff. We've already calculated that to be 0.17p per mile.
Unexpected breakdowns. Lets be pessemistic and say it throws you a £500 bill every 10,000 miles = 0.05p per mile
Total per mileage cost of running a 530i excluding fixed costs = 30.9p a mile.
Not really THAT expensive is it, this car thing? Only issue is depreciation - excluding that, its dooable at a profit on 40p a mile.
Tyres over 30k = 2 sets of rears @ £300 a set + 1 set of fronts @ £220 a set = £820 = 0.027 per mile
Brake pads, say a full set every 30k on average @ £300 fitted = 0.01 per mile
Clutch - 150k miles (assuming mostly long trips) @ £600 fitted = 0.004 per mile
Servicing..
Over the space of 60k you'd need 2 oil services @ £120, an Inspection 1 @ £220 and an Inspection 2 @ £300 = £760 = £0.012 per mile
Fuel..
30mpg average on long runs and out of town stuff. We've already calculated that to be 0.17p per mile.
Unexpected breakdowns. Lets be pessemistic and say it throws you a £500 bill every 10,000 miles = 0.05p per mile
Total per mileage cost of running a 530i excluding fixed costs = 30.9p a mile.
Not really THAT expensive is it, this car thing? Only issue is depreciation - excluding that, its dooable at a profit on 40p a mile.
No, although some insurers will increase your premium based on your expected mileage for most people over the age of about 25 it isn't a very big increase at all (Most adults can get business use for free) and you have to pay for insurance whether the car does 1 mile or 100,000 miles.
But lets assume you get shafted by your insurer and they want £200 a year more for putting down that you do business use, 10k miles a year. An extra 2p a mile..
Ditto VED.
Soldato
- Joined
- 3 Jun 2005
- Posts
- 5,365
- Location
- West Sussex
I think it still works in favour but the gap is closing considerably
completely, its not like it used to be where you could make quite a profit from it.
however, fuel allowance is going to be reviewed 6 monthly from now on! alright for those :/
Man of Honour
- Joined
- 11 Dec 2002
- Posts
- 10,909
- Location
- Darkest Norfolk
I was managing to hire and run a car a while back on 40ppm, admittedly i was doing about 130miles a day....
What on earth are you on about?
Maybe he sits there wheel spinning it?
Anyway, back on topic.
[TW]Fox;11774879 said:I had 53p a mile last year. Not only did it pay for my running costs completely it generated a surplus large anough to get 18's
Were you not taxed on the extra 18p?
I know you can be given more but was under the impression that you paid tax on anything over 40ppm.
As long as the mileage is under 10,000 does depreciation actually factor into it?
The car is going to depreciate just sat on a driveway anyway...