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Thread ID: 89698	2008-05-09 02:15:00	Cost of car.	Cicero (40)	PC World Chat

Post ID	Timestamp	Content	User
667518	2008-05-09 10:55:00	Wow. I am so lucky I do not live in Auckland. I do own a 2 litre vehicle and I mostly just use it to go to work as there is no public transport. But you do have to figure all costs! Possibly I ought to figure in what the government is going to cost me in regional tax? And I might add in extra taxes to improve roads in various areas. Oh wait. The Govt has already done this have they not? Unfortunately I have not seen very much in the way of results. I have a RAV4 2 litre BTW. Waits for some person to jump up and down about a Remuera Taxi.	Sweep (90)
667519	2008-05-09 10:57:00	Thanks for that . I had my license for 10+yrs, never been in a accident or pulled over . Never had to use my folk's insurance . But for me . . yeah . . never had a car myself, so no history at all under my name . Thanks for the info . Not getting a car yet, JP cars are too popular and until I have my own place . . I just don't need the car yet . Something like a Audi 6yr old, A4 or A6 would be nice with quattro, 2 or 3L turbo . No modifications .	Nomad (952)
667520	2008-05-09 11:03:00	A chum of mine tells me that the AA reckon the cost of owning a 2lt car averages 90cents a kilometer. Could those of you with penchant for sums agree with this figure? Seems hight to me. Would I be close in thinking your "chum" may work and use his/her vehicle for work and gets paid per kilometre? Could your chum go down to 1300 CC? Why not research for yourself? The AA is on the internet as it happens.	Sweep (90)
667521	2008-05-09 13:09:00	I have a RAV4 2 litre BTW. Waits for some person to jump up and down about a Remuera Taxi. Ummm... not big enough to be a Remuera Taxi :p Aren't they cars which have been distorted via a CAD program ;)	dolby digital (5073)
667522	2008-05-09 19:34:00	Would I be close in thinking your "chum" may work and use his/her vehicle for work and gets paid per kilometre? Could your chum go down to 1300 CC? Why not research for yourself? The AA is on the internet as it happens. It seems to me that it follows if we all did our own reseach,then we wouldn't need a forum,would we; Bitter?	Cicero (40)
667523	2008-05-10 05:17:00	If one looks at the true cost of car ownership it is quite a bit higher than you may think. On passenger cars the IRD allows a depreciation rate of 30% per annum on diminishing value, which would see a new car costing $30,000 depreciate to $10,310 after 3 full years, ie a reduction in value of $19,690. If one did 20,000 km a year this would give a depreciation rate of $0.33 per km. ( No one can accuse the IRD of being generous so this depreciation rate should be reasonably fair.) Next one should include interest charges, on any hire purchase agreement pro-rated over the period, or if the car was purchased for cash the opportunity value of the money, ie the interest forgone on the cash assets spent on the vehicle - Say one got a safe 6% on 30,000 on term deposit, this would be another $5,400 over the period in question, or another 9c per km on the example in question. so we are up to 42c/km without starting on Insurance, registration, garaging, fuel, maintenance, etc The IRD allows a mileage allowance for reimbursement of 62c /km for the first 3000 km and 12c / km thereafter. So if you conservatively take the lower limit of 12c to cover fuel and routine running costs, and add actuals for insurance, registration etc, it isn't going to be below 60c / km.	KenESmith (6287)
667524	2008-05-10 05:25:00	We lend a friend a 2006 1300cc Echo,we charge $100 for a week,but as it is for business I thought it should be higher,being fare to a friend. Have asked you all,we find it difficult to ask for more.	Cicero (40)
667525	2008-05-10 06:33:00	Try owning a 2003 5.7 R8. $100 per week (400km) petrol, and go from there. $180+ per week is easily imaginable.	RandomCarnage (9359)
667526	2008-05-10 14:06:00	Cicero, If you give me the capital cost of the car, the annual mileage run, I will calculate a fair running cost for you - for a car of that size it will be somewhere round 60c / km. In the example I gave above the opportunity value of the capital tied up in a car is used in the AA's computation of running costs. Routine servicing is distance travelled driven, as are wear on such items as tyres, brakes, clutches, exhaust systems - For new and near new cars it is easy, as there are unlikely to be any random mechanical failures or repairs, and if one occurs it is covered under warranty. This is the benefit of running cars still under warranty for a business - lease cars are a good example - the leasing companies profit is the amount realised on the sale of the unit, and costs and penalties are all based on distance run, and the leasing company has a sufficient bank of statistical data on such costs to be able to minimise risk and maximise profitability. Typically the client will pay somewhere round 95% of the capital value of the car over 3 years as a lease fee, but is only responsible for fuel, routine servicing, insurance and rego - what the client pays covers capital servicing costs and depreciation. It is a fairly simple exercise to calculate projected costs with a fair degree of accuracy, we used to have each department do a full costing along the lines I gave above for annual budgets.	KenESmith (6287)
667527	2008-05-10 21:56:00	Cicero, If you give me the capital cost of the car, the annual mileage run, I will calculate a fair running cost for you - for a car of that size it will be somewhere round 60c / km. In the example I gave above the opportunity value of the capital tied up in a car is used in the AA's computation of running costs. Routine servicing is distance travelled driven, as are wear on such items as tyres, brakes, clutches, exhaust systems - For new and near new cars it is easy, as there are unlikely to be any random mechanical failures or repairs, and if one occurs it is covered under warranty. This is the benefit of running cars still under warranty for a business - lease cars are a good example - the leasing companies profit is the amount realised on the sale of the unit, and costs and penalties are all based on distance run, and the leasing company has a sufficient bank of statistical data on such costs to be able to minimise risk and maximise profitability. Typically the client will pay somewhere round 95% of the capital value of the car over 3 years as a lease fee, but is only responsible for fuel, routine servicing, insurance and rego - what the client pays covers capital servicing costs and depreciation. It is a fairly simple exercise to calculate projected costs with a fair degree of accuracy, we used to have each department do a full costing along the lines I gave above for annual budgets. Thank you Ken...... $18500 in 2006,average km's 15000 per annum.	Cicero (40)
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