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What's the right way to figure cost sharing in a car pool? It's my car, and I drive all the time. My rider rides about 100 miles/day with me. He's been paying about $6.50/day. That covers almost all of my fuel costs (I get 48 mpg) but to get that I had to buy a newer car, with car payments and a beefy maintenance schedule. What's appropriate and/or legal?

2006-07-24 18:30:49 · 15 answers · asked by davidepeden 5 in Cars & Transportation Commuting

Thanks for all the input. A couple of details: Where we live is very rural--on the coast, no bus or other transit system available; taxi fare from where I work just to where I drop off my ridepool friend is $20. We were riding together before I bought this car--we haven't changed what he was paying then, when I had a fully-paid-for vehicle that got 33 mpg. And not that it makes any difference in the cost scenario, but this isn't a hybrid car--it's a VW diesel that I'm running on 100% vegetable oil biodiesel.

2006-07-25 16:49:19 · update #1

15 answers

Its best just to let them ride for free.

2006-07-24 18:35:06 · answer #1 · answered by BobbyJ38356 2 · 0 1

The acceptable amount that can be deducted for vehicle expense is $0.42 cents per mile. Companies compensate employees that utilize their personal vehicle for company use this amount. The true cost of ownership is more than most realize. That is evident from the amount companies pay and that can be deducted. As mileage goes up so do the repair and maintenance bills. It may appear that you could be making money if you get the .42 cents now but later on you could be loosing money. My suggestion would be to get what is due to you. Is joint ownership and equal split of the expenses a possibility. Can the vehicle just be used for the drive you and your rider are taking each day? This would be the best way to see that the expenses are equally split and you are not out more than your fair share. With that said you asked what is acceptable, in my opinion half should be collected .21 cents per mile. Hope this helps.

2006-07-25 01:57:13 · answer #2 · answered by Can do it man 3 · 0 0

One way would be to figure out how much it costs you to go to work in a week. Keep track of how much gas you put in your car, then divide it in half. Keep in mind that you also use your car for other than work, so just figure your work mileage. If you really are getting 48 miles per gallon, then figure that times the miles you drive to work every week. Once you get a dollar amount, you'll know how much to charge him, and all will be fair. If you can get another rider from your work, it would make it even cheaper, or if you can change off drivers with a third or fourth person. That would save wear & tear on your new car. I don't think that $6.50 a day is too much to charge someone to ride with you. It would cost more if he took a cab, right? Even riding a bus (if you can get one) would cost more than that, in some areas. But, expecting him to kick in for tires and other stuff isn't a good idea. It would be harder to figure those costs in, being that you'll put more miles on after hours than going to work. I would definitely look into getting more riders and/or drivers, with the cost of gas continuing to go up. It will get more expensive for everyone. Share the cost & save. <*)))><

2006-07-25 01:42:40 · answer #3 · answered by Sandylynn 6 · 0 0

You figure out the cost to buy a suitable vehicle, insure and operate that vehicle and agree in advance what each passenger will contribute up front in writing towards the cost of the vehicle so there is no "he said she said" stuff later. Usually the cost to operate will run more than your estimates as ther is also tire wear, oil changes and general maintenance and wear to consider. The IRS gives $0.37 per mile write off. Consider the cost to drive and operate and add a little to is as it too will have to be replaced one day...

An agreement can read anyway you want it to, but I'd suggest an attorney to write it up but with your friendships in mind.

2006-07-25 02:05:16 · answer #4 · answered by hithere2ya 5 · 1 0

When I was carpooling back and forth from San Fran to the East Bay in my Lincoln sedan, I calculated how much I would be paying per week for:

Gas

Bridge tolls

Oil changes (figured the mileage, extended it out to 1500 miles, then prorated miles per day)

Insurance (6 months, prorated per day)

Incidental repairs (took past year's worth of expenses and extrapolated forward.)

Then I divided it six ways, took on three parts for myself cos it was MY car and I used it for alot more than just carpooling, and my passengers each assumed 1/6th the cost, payable per week.

For a 50-mile RT per day, 5 days a week, I was collecting $20 from each of them. That's $60 per week, or $15 per day... which covered the parking and about 3/4ths the gas costs (but bridge tolls were free and mileage was better, as we were a carpool and could use the HOV lanes).


Incidentally, I ended up selling the car and buying a motorcycle. I ended up paying about the same amount of money.. but had a lot more fun commuting.

2006-07-25 01:48:04 · answer #5 · answered by dcnblues 2 · 1 0

There is 2 ways to look at this.
1st, you would have to paid for gas if they dont ride with you, so by them paiding your gas, you have gain free gas. So if they are your friends, that should be good and fair already.

2nd, If you look at it as an bussiness, then you calculated the actual mileage cost, and divide it among all partys.
Use the IRS mileage credit price,it used to be 36 cents a mile, but should be higher now. This includes all cost of running an average car. I dont recommand this approach with friends.

2006-07-25 01:43:36 · answer #6 · answered by dcw13 3 · 0 0

Gas only, man. Anything more is outside the norms of carpooling. If you're afraid of maintenance, try alternating driving. But then I bet you wouldn't want to pay the other guy's gas bill. I can see what you're not satisfied with the amount you're getting since you're driving a hybrid, but maintenance and other costs have never figured into carpool arrangements as far as I've heard. But good for you reducing your emissions; that should be a reward in itself.

2006-07-25 15:24:52 · answer #7 · answered by Omar Y. 4 · 0 1

If you do all the driving then yes they should pay extra for maintenance. However, you say the money covers all the gas cost? That seems like ample compensation.

2006-07-25 01:35:39 · answer #8 · answered by Spike Spiegel 4 · 0 0

This is a human relations issue, not a legal question. Just state frankly your concerns to your friend. Then negotiate for a win/win!

2006-07-25 01:33:30 · answer #9 · answered by ? 2 · 1 0

well gas probably, cause you'll be going that way anyways... u should take turns using other cars if possible, i doubt any other moneys are called for other wise take a collection for your car payment as well if you dis agree

2006-07-25 01:33:57 · answer #10 · answered by nate7799_98223 2 · 0 0

dont forget the cost of car insurance and maybe auto wax,you could make him work off part of it by using "HIS" minivac to keep the inside clean while your driving.You could even charge enough to make a little profit.

2006-07-25 02:30:49 · answer #11 · answered by Mr Toooo Sexy 6 · 0 1

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