Topic: Actual Operating Costs

[Trainman]

Was reviewing my expenses for 2009 with my accountant and as a side light noted my vehicle operating expenses dropped quite a bit.  For the first full tax year with the Forester, it is costing me $0.39/km to operate, with 32,000 kms put on the beast in 2009.  These costs include:

Fuel;

Insurance;

Routine maintenance (there was no "repairs" required as there shouldn't be being relatively new);

Two way radio fee and other miscellaneous fees;

Depreciation (which is about 50% of the total  ).

Does not include any kind of finance fees (loan or lease payments as that will vary by individual).

For 2008, which was 8 months of the Pathfinder and 4 months of the Forester, the km rate was $0.55 and total kms was slightly less than 2009.

On the downside, due to many more trips to Vancouver Island to see my elderly father, the personal % has gone up, reducing the amount I can claim on my business   

When I mention the total cost of running my vehicles, people look at me like I am some sort of weirdy as I point out it costs about $80 just to run the vehicle to see a movie.  I guess most just worry about how much fuel they have to put in and never account for the rest.

Anyone else tracked actual total operating costs and willing to share their experiences?   

[johngenx]

Depreciation and gasoline are the biggest with pretty much all vehicles.  It makes things like the Land Rovers super expensive to own, as they depreciate like mad and suck gas too.

[quadzilla]

I track every expense (not just car, but every penny) but I don't figure it out like you do.

Interesting numbers though.

[airbalancer]

Year end not done yet

[The Mighty Duck]

When I mention the total cost of running my vehicles, people look at me like I am some sort of weirdy as I point out it costs about $80 just to run the vehicle to see a movie.

Your closest movie theatre is 100 km away?

[sailor723]

I don't track it to the penny but it seems to run about $1050-1100/month for the SRX based on about 22,000km  per year. I'd guess depreciation would be about half of that number.

[Trainman]

I track every expense (not just car, but every penny) but I don't figure it out like you do.

Interesting numbers though.

I track it for tax purposes as it is my business vehicle.  We do not do that for the Sienna.

When I mention the total cost of running my vehicles, people look at me like I am some sort of weirdy as I point out it costs about $80 just to run the vehicle to see a movie.

Your closest movie theatre is 100 km away?

Afraid so, by the time we do all the driving.  Further if we go to a theater in Kelowna.  3-4 movies a year is what we take in.

Depreciation and gasoline are the biggest with pretty much all vehicles.  It makes things like the Land Rovers super expensive to own, as they depreciate like mad and suck gas too.

Fuel is the second biggest, at about 27%.

[dr_spock]

I'd like to track all expenses even if I can't write them off.

Couldn't you use the Sienna to visit your father?

[Trainman]

I'd like to track all expenses even if I can't write them off.

Couldn't you use the Sienna to visit your father?

Trying to keep the kms off the Sienna, notably in winter.  And I much prefer to drive the Forester   

[rrocket]

Yea, we track both of our cars fuel mileage at Fuelly.com  So we have every fill up.  We know our insurance cost (~$80 month per car).  No repairs, just maintenance which is easy to track.  I'll come up with some figures when I have a moment.

[No H2O]

12 cents per kilometer.   

[rrocket]

Toyota Echo over 22,000 kms  = 10.6 cents per KM

Lexus IS300 over 12,000 kms = 20.3 cents per KM

These costs include fuel, maintenance and insurance.

[articsteve]

A vehicle that retails for around 50K, taxes in, operated from new for 6 months and then resold at retail receives a taxable benefit of 60-70 cents per km based on approx. 8K to 10K km.  Gas and insurance included.

 

[carcrazy]

I expense mine per km (@.52/km for the first 5000 km and @ .46/km for the rest). No car payments so I figured it works out a bit better based on about 500 km/week for business, plus I don't have to bother with extra receipts. The maintenance is well under $1000/year so far, no repairs (under warranty).

Wouldn't you be better off to expense mileage too?

[Leviathan]

Interesting. The Tribute is checking in at $.19/Km over ~35,000Kms & 47 months. That does not include depreciation or insurance but does include, vandalism deductible @ $300 & new tires @~$1,100 to replace the truly horrid OEMs, all servicing, wiper blades, gas etc.

Adding insurance takes it to $.38/Km. I should drive more 

[rrocket]

^^Just curious why you don't include cost of insurance?

[CyberNick]

Insurance, gas, tires, regular maintenance and estimated depreciation: 0.42/km over 23,000 km in 2009

I'm interested how you guys calculate the depreciation.

Here is how I did it:
I looked at what a car like mine sells for now ~ $17,000, I subtracted an estimated amount for the rear end collision damage on mine ~ $7,000, I added the would be sales tax on to that to come up with $11,500 and ompared to the initial price that I paid with tax. It turns out that my car is now worth 71% less. Finally, I took 71% of my monthly payment and used that as the monthly depreciation value.

[Leviathan]

^^Just curious why you don't include cost of insurance?

Didn't have it handy at the time. I checked back and it adds another $.19/Km 

[articsteve]

I'm interested how you guys calculate the depreciation.

Whatever the current Revenue Canada guidelines dictate.  Mine is done by the CA firm.  But since the numbers are all on paper here is the basic calculation.

Acquisition cost minus Disposition amount x allowable rate of depreciation = total depreciation.    Add cost of gasoline, insurance/license, service costs and there you have your base number.

Then comes the part where the majority of ppl hang themselves if they are applying this number against their personal income for tax purposes because if you really follow the Revenue Canada rules every km must be accounted for and ppl just don't make record of every km travelled.  PPL estimate, as in guess, and under the "rules" that is not allowed. 

 I looked at what a car like mine sells for now ~ $17,000, I subtracted an estimated amount for the rear end collision damage on mine ~ $7,000, I added the would be sales tax on to that to come up with $11,500 and ompared to the initial price that I paid with tax. It turns out that my car is now worth 71% less. Finally, I took 71% of my monthly payment and used that as the monthly depreciation value.

For what purpose I dare ask ?
 

[Schmengie]

If you count only fuel, maintenance and insurance, for 30 months and 40,000 kilometers the Versa costs me about 14 cents per kilometer. Including initial cost, taxes, depreciation, maintenance, insurance, fuel, etc, etc, etc, it's more like $400 a month based on keeping the car for another 30 months.  Not bad, really.