daimaru

Ok people, I am having a dilemma here. I just started a new job which requires quite a bit of driving. I've heard anywhere from 1000 - 3000 miles a month from different people that are working there.

I am trying to decide whether to sell my 2003 C230 sedan and buy a Prius, or just live with the potential high mileage and tear and wear.

The problem is, I just bought the C230 back in May, and if I try to get rid of it now, I am going to lose quite a few bucks.

Here are the numbers, hope someone (financial advisor?) can work it out and see what the better option is. Selling the C, or just live with it.

Say my C averages about 25mpg, and gas is $2.19/gallon. And I get reimbursted $0.31 per mile while I'm driving my own car. And the monthly payment on the car is $660/60 months. Am I better off using the reimbursement to help pay for the car? Or the reimbursement is not quite enough to cover all the expenses associated with keeping a potentially high mileage car? Maintenance, depreciation, etc etc...

I am pretty sure some of you've gone through something like this... heh, so lets share your thoughts!

Thanks.

Xeon

not a finance grad..but gonna be 1.....lets see here..

25 mpg, $2.19/ gallon (where do u stay..why is it so expensive!)

cost= 8.76 cents / miles

deducting that from the 31 cents, you will get approx 22.2 cents..

1000-3000 miles a mth. an average of abt 2000 miles.

if you selling off your car now, you will lose approx 7 grands?

if you going to be at the job for 5 years

22.2 cents X 2000 X 60 = $26640 <-- you get this so called profit, which i think is more than sufficiant to maintain your car?

if you get a prius, and lets estimate it does 40mpg:
you get a "profit" of 25.5cents

25.5 - 22.2 = 3 cents

in 5 yrs....3 cents/miles for 2000miles/mth = 3600

the additional saving is 3600


so..it all boils down to how much you are gonna lose when you sell your sedan now.

I did not take into the cost of depreciation after 5 years (since you already have your sedan)...and of course, none of the present value of money sorta things...

Xeon

sorry...overlooked something

the payment of your car comes to 39600, something which your reinbursement cant cover....

but again!...before you got this job, you didnt thought of using your reinbursment to cover the cost of this car right??


if you get a prius (20k?), you will be able to cover it....

daimaru

Yes, I never thought I would get reimbursted for driving my car anyways. So I guess it comes down to whether I accept the fact that I am getting some help (money) to rack up mileage on my car...

Heh, this is getting confusing as I think more and more about it!


I'm in the Bay Area. Gas prices fluctuates so much so I just used that figure to play on the safe side. Heh, I remember I was paying $2.30 something not too long ago.

Xeon

i stayed there for 2 yrs.....i remember paying abt 2.5 at 1 time

Lynn

3000 miles per month in a Prius? Are you a masochist?

tsberkey

daimaru,

Having put on about 30,000 miles a year from 1982 to 1996, I can tell you this: it doesn't matter WHAT you buy, it will be worth zilch when you get done with it. If you are getting reimbursed for most of your driving, then you need to consider the MOST important part of this equation. That is, which car do you want to spend 2-4 hours a day in? Personally, that makes the issue a no brainer. Your C will still be better to drive in 5 years than your Prius (or any other econobox) will in 5 days!

Also, you didn't mention what your new job is. Will you be in a position in which the amount of business you have is decided by customers that you must make an impression on? It is much easier to make that impression driving what you already are, rather than what you are considering.

Good luck with your decision. I know it's not an easy one for you because it's YOUR money, not ours!!!

Tim

Blake P

Are you sure you only get $0.31 per mile? I know I get $0.36 per mile and it fluctuates from year to year as determined by the government. Either way, I'd never ditch my car in favor of a "commuter car." I sure hope you're taking more into consideration than simply which one will be a better value. There's no doubt which car would be better to drive after work and on weekends.

daimaru

I am thinking of the same thing. Unless somehow I find a cheap Prius or beater to drive and can sell my C without having to pay out of the pocket (impossible considering the depreciation of a 7 months old car), I should just live with it.

On the other hand, I guess driving the C and being seen in the C is more than enough to justify the few cents per mile difference...

The job I got was "indirect accout manager", and it does involve seeing and being seen by our customers. I sure would feel better and more confident stepping out of a MB than a beater... heh...



Yes, $0.31 per mile. I checked a few places online and there seems to be no standard or minimum amount for mileage reimbursement.