Quote:
Originally Posted by Barrykgerdes
If petrol was the only cost it would be OK but the standard rate for a car/ute of that size is 75c/KM that covers depreciation, insurance, maintenance, registration etc and is the rate that the taxation department uses if you are able to claim it as a deduction.
My Station sedan travelled 3547 KM last year and cost $1624 last year according to my records. I don't pay rego and I don't have any depreciation (I depreciated it to zero for taxation 10 years ago). but that is still 45c/KM
If more people realised what a car costs to run they would soon use other means of transport. the average SUV used to transport the kids to school cost over $1.00 per KM to run.
50 years ago I did a cost evaluation on owning and running a medium size car and it was found to be cheaper to order a taxi if your distance travelled per year was under 3000 miles
Barry
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Hi,
Parts of this are sunk costs. That is, you pay it when you own the car regardless of whether you go to Melbourne or not.
But yes, I recall an NRMA study years back which found that certain people should sell their cars and take taxis as it was cheaper. I know a mate that had so many motoring fines, he did that
I think it is fair in this case to consider only the incremental cost of taking the trip, mainly petrol, and a small proportion of periodical maintenance (eg oil change), and speeding fines
I had a go at estimating standard courier costs on this, and got $1000 - $1300, but that still seems high. Anyone know?
Cheers