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How much does it cost to drive a car per mile?

I drive my car for work and will get reimbursed, but my boss wants to negotiate the price per mile...

I drive an 02 kia optima which gets about 29 mpg, but for this im going to say it gets 25 mpg....

I change the oil every 3000 miles, I have full coverage on the vehicle, but im under 25 so I'm paying out of my *** for it....

I put on an average amount of miles, 12,000 miles per year.

The cost of gas where I live is $2.59, but I need to figure it around $2.71 because its going to go up again.

What should i ask for?

Update:

Oh, I forgot to mention, I did look up rates and find that its around 50 cents per mile, and my boss laughed and said there is no way.

Is there some law maybe?

9 Answers

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  • ?
    Lv 5
    1 decade ago
    Favorite Answer

    Most businesses pay the established IRS rate. There is no law that says the need to pay that much, but that is what they will accept for tax purposes for mileage claims. It tends to cover a lot more than just gas even when cost of gas is higher. But they do that intentionally. If you are going to drive hundreds of miles a month for the company, then you are going to put wear and tear on your car, you are going to need new tires sooner, you are going to need to report your higher mileage to your insurance company and they will need to charge you more. For a few trips here and there, it shouldn't be a big expense for the company to reimburse you at .55 per mile. If they are expecting lots of miles, they should consider buying and maintaining a car for you and others to use for company business.

    Don't let your boss take advantage of you. Or he can let you use his car and give you a gas card.

  • Anonymous
    1 decade ago

    You really have to negotiate something. The IRS standard for deductions is 55 cents per mile, but most companies don't pay anywhere near that much. I'd ask for 30 cents a mile.

  • 1 decade ago

    Figure you are going to have your car and insurance anyway unless you plan on riding a bike if you are not working. Even 2.75 for a gallon of gas divided by / 25mpg cost you .11per mile. divide 2.75/ 25= .11 . At the most just figure it would cost you .20/mile. Over the road truck drivers make .34/mile so I would ask for at least the .11 and prob no more than .25 per mile.

  • 1 decade ago

    Your boss should pay the standard US Government rate of 54 cents per mile. If he laughed at 50 cents, he'll have a heart attack at 54. But, if you take less, your getting screwed.

  • REV B
    Lv 7
    1 decade ago

    As of today, the reimbusement is fifty five cents per mile. Lately, that rate has risen about one penny a week. There is no negotiating, that's the going rate.

    Source(s): Wife's reimbursement for her job
  • B
    Lv 4
    1 decade ago

    54 cents per mile. That is the rate the government pays.

  • 1 decade ago

    try this.get a full tank of gas evrey time you fill up.as in fuull tank(i shake my car to fill it up to the max.)reset your mile reader to 000 (ours is kilometer reader).if you dont have that in your speedometer takenote of the last reading minus it to your present reading to get the miles you traveled..so the next time you fill up again repeat this again and again.but now you have to divide your miles reading by the number of gallon you consumed. then you get your mpg accurately...

    you can compute the ave mile you travel on a monthly bases that will more easy or accurate than yearly computation..

    then you ask your boss per VOLUME(gallons) of gas you need per month and not the price of gas...with that you dont have to worry about the price of gas going up or going down..

    so if i will base on what you wrote above youll need around 40g per month or 480g per year

    i have the same situation and thats what i did to my boss...i hope i helped

    Source(s): experience
  • Anonymous
    5 years ago

    All that hardship basically for a Pilot??? Sheesh. one hundred miles/15mpg = 6.66 gallons x $3.50/gal = $23.10 spent on gas/100miles = 23.a million cents/mile placed on & tear relies upon on thre quantity of using performed. you will no longer have any in simple terms on one hundred miles.

  • ken k
    Lv 7
    1 decade ago

    cll local car rental/avis/hertz etc and they will give you some working numbers

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