Nissan Titan Forum banner

1 - 16 of 16 Posts

·
Registered
Joined
·
433 Posts
Discussion Starter #1
So I will be traveling for my new job and I need help figuring out what type of rembursement I should go for.

My boss who does exactly what I will be doing put on 35K/year over the past 2 years including personal mileage so I want to make sure im not getting screwed in this deal as my Titan resale is going to take a major hit.

My point. I need a mileage based Maintenance schedule with costs. Has anyone put something like that together? Im not finding much through google.

Thanks.
 

·
Premium Member
Joined
·
92,554 Posts

·
Registered
Joined
·
184 Posts
The IRS mileage rate is 48.5 cents per mile for 2007. If you are not reimbursed through your employer, that is the deduction you can claim on your taxes. So for 35k miles, that would be just under $17k per year.

Looking at it from another angle, gas alone will cost about $7000 per year (assuming 15 MPG & $3/gal). 35K miles equates to just under 12 oil changes (3000 miles each), at a cost of $75 each = $900. You could also assume that your tires will last 70,000 miles, so 1 year's wear would be 1/2 of replacement cost - $600. Add in another $2500 for other items - alignments, brakes, transmission services), and you're looking at $11,000.

I use my vehicle for work, but nowhere near the amount that you will. However, my employer reimburses me for mileage at 48.5 cents per mile (they stay even with the IRS rate). Based of the quick analysis I did above, the 48.5 cents per mile doesn't seem too bad.
 

·
Registered
Joined
·
14,534 Posts
Yep thats what the military gives me for milage too 48.5 a mile.
 

·
Premium Member
Joined
·
75,682 Posts
my office offers the irs rate as a reimbursible... however i interviewed with another company that wanted me to take an 11k pay cut but offered a 600/month vehicle allowance.

not sure if that info is useful but perhaps asking for a vehicle allowance isn't a bad idea for you...
 

·
Registered
Joined
·
6,053 Posts
dss90c said:
You could also assume that your tires will last 70,000 miles, so 1 year's wear would be 1/2 of replacement cost - $600.
70,000 miles? What kind of tires are those? I want five sets of them!!!



I'd find a beater car that gets decent mileage and is reliable. It will actually make you money in the long run at 48.5 cents per mile. And who cares what the resale value of it would be.
 

·
Registered
Joined
·
184 Posts
54warrior said:
70,000 miles? What kind of tires are those? I want five sets of them!!!

I know I was being very optimistic (and conservative). With the stock BFG's on mine, I should have said 7,000 miles....
 

·
Registered
Joined
·
121 Posts
54warrior said:
I'd find a beater car that gets decent mileage and is reliable. It will actually make you money in the long run at 48.5 cents per mile. And who cares what the resale value of it would be.
Buy a Sentra. My mom has one that she's put over 148K on it in the last 4 years. Low maintenance, and decent mileage. The 48.5c per mile could easily pay for a used one in good shape, and you'd have a bit left over.
 

·
Registered
Joined
·
446 Posts
Wow another Masshole like me on this board.

I agree with TruWrecks. Buy a cheap new small car (if permissible for your work) and drive it until it dies. I commute about 100 miles per day (Auburn to Cambridge and back), and after doing the math for what it would cost for gas, maintenance, etc. driving the '05 Titan, I bought a Scion xA. With payments, gas insurance, maintenance, etc., I basically came out ahead (can't beat 37 MPG vs. 15 MPG).

But, it was tough to convince the wife to trade in the '05 Titan on the '08 Titan when the '05 only had 9000 miles over 2 years as it sat in the driveway during the week. She finally got tired of me bothering her and conceded. So now a new '08 sits in the driveway.

Taking the stats listed above, if you get a car that gets 35 MPG highway then:

Gas alone will cost about $3000 per year (assuming 35 MPG & $3/gal). 35K miles equates to just under 12 oil changes (3000 miles each), at a cost of $35 each = $420 (not sure where it costs $75 to change the oil in the Titan?). You could also assume that your tires will last 70,000 miles, so 1 year's wear would be 1/2 of replacement cost - $600. Add in another $2500 for other items - alignments, brakes, transmission services), and you're looking at $6,520.

So basically you save about $4500/year ($375/month) by not driving the Titan. Figure your insurance on a new car might be about $75/month (even in this god forsaken insurance regulated state). So, you could buy a new small car (maybe a base Accord or Camry too) with a payment of around $300 and break even at the worst.
 

·
Registered
Joined
·
251 Posts
Sounds like everybody is getting pretty sweet deals using their trucks for work. I drive between 3,000 and 4,000 per month mostly for work. My employer gives me a flat $500 per month and pays all the gas. I have to pay for maintenance, tires, insurance etc. My '04 just passed 106,000 and I owe much more than it's worth. I am quite sure I am not getting a good deal now.:crybaby:
 

·
Premium Member
Joined
·
4,223 Posts
Time to find a job with a company car. Let them own and maintain it. They want you to think you're coming out ok, but in the end you're hosed.

Clint
 

·
Registered
Joined
·
679 Posts
The miliage reimbursement it typically derived from an average cost to operate an average car.... and it's derived from the government so they're slowwwww to update the cost when gas spikes and things like that.

For 48 cents a mile you could buy a slighly used Honda Civic or similar and make a bunch of money by the end of the year... on the other hand driving a big, new truck like the Titan the 48 cents doesn't even come close (don't forget depreciation... it's a biggie). My company pays everthing for my truck.. it's actually my company so it's all my $$ anyway but I run everything I can through the business for the tax shelter.

My raw numbers for last year were the following...

20,000 work miles for a rough cost of around $14,000

per month stuff-
pymt 565
gas 375
insurance 85



total stuff -
2/3 or a 30K service - 400
2/3 set of tires (chepie, 30K goodyears) - 425
oil changes and other misc stuff - 1000

That works out to around $1.43 per mile... yikes...

A couple things to note - my 565 payment is going mostly to principal - I got in on the 1.9% for 5 years... I've been paying on the truck for almost 3 years, it has 56K miles and a Kelly or NADA private party blue book of around 22K... I owe 15K... So, I am paying it down quite a bit faster than it's depreciating. Point being, the 1.43/mile turns out to be higher than actual... but it's a nice tax shelter.

I don't know if insurance counts as an actual vehicle expense... It's paid through my company....

Bottom line is the standard deduction doesn't come close with a big, nice, new truck... I used to just take the standard rate and my accountant just about had a coranary... I thought it was a great deal getting a check each month for $700.... Once you add up all the costs you'll be surprised.
 

·
Registered
Joined
·
433 Posts
Discussion Starter #13
Yeah, I just became a Masshole last month and just started my new job which requires all this commuting.

Thanks for all the help, my figures must be off, I factored a depreciation and maintenance monthly cost and it came out around $300-400/month. I need to look beyond 1 year and see how upside down the car will be to make this decision. Maybe I'll need to trade for a cheaper vehicle but thats hard to downgrade when you owe about exactly what its worth. And when you are used to driving such a sweet truck.
 

·
Registered
Joined
·
363 Posts
My company gives me 46.5 cents per mile. I've put over 30K in less than a year on my new truck. The mileage more than pays for the truck and gas. Oh, and it comes back to me as TAX FREE reimbursement on my paycheck.
 

·
Registered
Joined
·
1,132 Posts
I've worked for the same company for 19 1/2 years. I've been driving my own vehicles for 16 years. I figure that as long as they pay me enough money for make the loan payment, pay for gas and maintenance, then it's like getting paid to drive my vehicle. And I don't care about racking up all the miles. You have to have car, so let them pay for it. But make sure you buy a Nissan or Toyota to keep maintenance low.
I drove my Pathfinder for 3 years after it was paid for, and saved that loan payment money for my next vehicle ( Titan ). And I'm still driving the Pathfinder for work.
 

·
Registered
Joined
·
12,754 Posts
I was spending over 600 a month on gas alone on the titan, so I bought a used saturn. Now I am getting 37 mpg, tires are cheaper, and oil changes are cheaper. Still use the titan for personal use, but not for my 400 miles to work.
 
1 - 16 of 16 Posts
Top