ASKING FOR HELP,,,analyzing annual cost to drive this truck for buisness

[Mavman123]

Being in Iowa, tons of salt and slop, constantly below freezing, and tons of bugs in the warm seasons, washing your own vehicle not really an option,, maybe self serve high pressure in the warm times. Tires,, traveling over 35 years on the road,, I buy the VERY best Michelin's money can buy,, tire failure not acceptable on a dark interstate at 10PM at nite,, been thru all kinds of breakdowns and part failures after over 2 Million miles traveled. It truly pays to spend the money on the best tires, or replacement components possible,, and Michelin's aint cheap. I have been a factory sales, installation and training rep for a major wheel alignment, balancing and tire changer/brake lathe manufacture since 82,, I have my shops I patronize as far as vehicle service. As a past GM Master tech, years and years racing 4 speed NHRA stock Eliminator cars, I've paid my dues laying under cars, I'm getting old, other than a few colletor cars and an off road XJ that I take west for 4 wheeling, I don't do oil changes or any late modle work anymore. Part of getting old and fat.

Well it sounds like you won't budge on your ways, so what help are you asking for then? Everyone here has given you ways to save money and first and foremost figure out why you aren't getting the full mileage reimbursement.

I didn't mean to go cheap on tires and buy some crap $50 Chinese tires. You can find American made cooper or lower end Goodyear's for well under $150 each tire

Sponsored

 

[Sirk]

Wow. I fell down a rabbit hole on this one. I'd never heard of FAVR or Motus. So off I went...
The Motus website seems intentionally opaque on how the sauce is made. I found a competitor whose site seems a little more forthcoming on how it all works: Here is a link for anyone interested:

https://www.mburse.com/2020-everything-your-business-needs-to-know-about-favr

The pitch is all about equity and fairness. The process is supposed to customize reimbursement to include factors of geographic location, changes in variable expenses, and relative amount of driving per employee. Frankly, it all comes off as just another tool employers can deploy to pay employees less for the personal vehicle miles they drive for their jobs. I think the OP's calculations, when compared to standard IRS rates kinda bear that out.

 

[MLowe05]

.14c per mile? Yikes.

When my husband worked for the state of GA back in 2016, he was driving our Optima Hybrid 1000-1200 miles a month and it was paying for itself, gas, and maintenance with a rate of like .545c per mile.

No way would I agree to use my own vehicle for .14CPM.

 

[jsus]

Wow. I fell down a rabbit hole on this one. I'd never heard of FAVR or Motus. So off I went...
The Motus website seems intentionally opaque on how the sauce is made. I found a competitor whose site seems a little more forthcoming on how it all works: Here is a link for anyone interested:

https://www.mburse.com/2020-everything-your-business-needs-to-know-about-favr

The pitch is all about equity and fairness. The process is supposed to customize reimbursement to include factors of geographic location, changes in variable expenses, and relative amount of driving per employee. Frankly, it all comes off as just another tool employers can deploy to pay employees less for the personal vehicle miles they drive for their jobs. I think the OP's calculations, when compared to standard IRS rates kinda bear that out.

Motus is a software company, they provide the software OP's employer uses to track mileage reimbursement. They don't set the rates. That company has nothing to do with OP's issue of being severely under-compensated for the usage of a vehicle, per the data provided by OP.

Wiki article: https://en.wikipedia.org/wiki/Motus,_LLC

 

[MakinDoForNow]

Wow, only $800 a year in insurance ! Double that price in New Jersey and God forbid you get in an accident. On the other hand, $250 a year for registration/tags seems like a lot. Would be about $70-80 here. You are way ahead , though, with the insurance .

Note: in some states (usually at registration renewal time) there is a personal property or referred to by another name TAX which is collected on a declining value which will stabilize at around 10%. Say first year at 4% of 60% of original sales price, second year at 4% of 49% etc each year until say 10% is reached.

 

[Sirk]

Motus is a software company, they provide the software OP's employer uses to track mileage reimbursement. They don't set the rates. That company has nothing to do with OP's issue of being severely under-compensated for the usage of a vehicle, per the data provided by OP.

Wiki article: https://en.wikipedia.org/wiki/Motus,_LLC

I understand that, I referred to the product as a tool employers can deploy to facilitate screwing their employees on mileage reimbursements. What is not clear, to me anyway, is who sets the rates, and more importantly by what measure? Who decided that $238/month and $0.14/mile is equitable for this person in this situation? It's not the software vendor, although they provide the data used to justify the rates. I can't imagine the IRS is involved to that level of minutia. That leaves the employer, paying the vendor to leverage the tax code to screw the employee.

 

[TRQ427]

I understand that, I referred to the product as a tool employers can deploy to facilitate screwing their employees on mileage reimbursements. What is not clear, to me anyway, is who sets the rates, and more importantly by what measure? Who decided that $238/month and $0.14/mile is equitable for this person in this situation? It's not the software vendor, although they provide the data used to justify the rates. I can't imagine the IRS is involved to that level of minutia. That leaves the employer, paying the vendor to leverage the tax code to screw the employee.

Thank you for your reply, you hit the nail on the head! I already know this figure isn't equitable, with all this IRS input that I never experienced being self employed all these years,, I feel the gates have been opened to short change the employee, and profit the company. Or is it a screw job for both the employer and employee, benifitting the IRS. I was hoping someone in the same position I am as of 2020 and 2021 could present their situation for comparision purposes. Thanks for all that have commented on this thread. I am trying to get this figured out as I'm gonna order a hybrid XLT as soon as the order books are open again, very impressed with a small truck under 20K. (It will be an XL if the aftermarket cruise proves to work out good.)

 

[projectvortex]

If you’re using $3.50/gallon for gas, you better make that the floor, not an average, with the way things are going……as we speak.

 

[NewBernWolf]

I see a lot of helpful input from members that are good at calculations. Here's my issue, the job I have pays us a fee based on a system called "MOTUS". Reimbursement rates are $238 monthly vehicle allowance and .14 cents per mile. I drive 60K per year. Assuming 4 year life cycle before vehicle is ready to be replaced (60K X 48 months + 240K miles,,time to go) Just jotting down some figures, assuming a 27K investment, annual insurance approx $ 800 per year, $800 for tires every 1.25 years, $33 a month to wash it, annual maintenance approx $100 a month, , $75 for oil change, and bank $25 per month for things like wipers, air filters, etc,, and so on,then yearly tag fees around $250, I figure vehicle cost around $785 per month for 48 months. That gambling on no repairs needed after 36K warranty period. Assuming fuel at $3.50 per gallon, 33 MPG average hybrid figures as most of my miles are high speed interstate usage,, monthly fuel costs around $528 per month. Anyway, if I'm even close to figuring this correctly, it looks like my ACTUAL costs would be $1313 per MONTH!! At my "current" Motus rate, I'm recieving approx $800 to $850 per month, with my current vehicle mileage around 22MPG,, I think I'm paying to play,,doesn't sit real well with me. Am I looking at this right?? I realize the truck would have some residual value at the end of 48 months, but I'm thinking maybe $4K since it would have 240K on it. Really appreciate any input on this. THANK YOU MUCH

But don't you already pay for insurance, maintenance, tax, tag, registration in whatever you drive now? Wouldn't you just factor in the difference in gas mileage and updated insurance premium?

 

[FX4M0]

Get a new job

Sponsored