Fair price for milage

wendyloub

I have children at the school, and I've always picked them up in the past, then she lived half a mile from me, her partner drops them off with my parents in the morning who then takes them to school, as my Mum works there. I'll ask her for £4 a trip I think or maybe she could pay for my kids school dinners a couple of days a week thanks

steve-L

I think that works...
If you feel you are being taken for granted then you could throw in a bag of ironing (she can do to pay for your time) or something once a week?

Hintza

steve-L wrote: »

I'd simply charge her 45p/mile which is what HMRC calculate as fair running costs under 10k/yr.

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The Cherokee works out at around 87p/mile when towing.

The HMRC amount is a gross underestimate for most cars. We have this problem when towing my sister in laws pony around. I add up all the fixed running costs per annum and divide those by the number of miles we do (in our case around 9k) then calculate the mpg (17mpg when towing) and add that.

The only real contentious figure that I struggle with is an annual charge for depreciation which I currently have at £2k/annum but think I should reduce slightly.

So unless you are driving a very small car or it is an infrequent arrangement you really need to work out the cost of ownership of the car per annum then add fuel.

steve-L

Hintza wrote: »

The Cherokee works out at around 87p/mile when towing.

The HMRC amount is a gross underestimate for most cars. We have this problem when towing my sister in laws pony around. I add up all the fixed running costs per annum and divide those by the number of miles we do (in our case around 9k) then calculate the mpg (17mpg when towing) and add that.

The only real contentious figure that I struggle with is an annual charge for depreciation which I currently have at £2k/annum but think I should reduce slightly.

So unless you are driving a very small car or it is an infrequent arrangement you really need to work out the cost of ownership of the car per annum then add fuel.

Do you have the Merc diesel engine? (I suspect not?)

I have a BMW330D, 45p/mile MORE THAN covers depreciation, fuel and other running costs if I assume I'd have a car anyway...

I'm currently working on the theory the OP doesn't drive a big 4x4 with a horse-box when dropping the kids off? If she does then perhaps the answer is to lend a couple of horses to her sister and they can ride to school? :rotfl: (Note humour)

jimbo_the_jetset

If you have a smart phone there are a variety of apps you can get to calc your mpg and various other data if you input the details every time you fill up.

Over the last year my average mpg is 43 miles per gallon (small petrol) which equates to an average fuel cost of 14p per mile.

Add on some for your time and possible extra wear and tear. Say 8 miles extra per day, 5 days a week, 40 wks a year = 1600 miles (soon adds up). Assume your do an average 10,000 miles a year then say you may want to ask for 15% contribution to annual maintenance costs/repairs. Lets say £200 service + £50 MOT + £250 misc repairs/tyres/brakes = £500 per year, 15% = £75 contribution per year. Over 10,000 miles an extra 7.5p per mile??

So 14p is per mile for fuel + 7.5p per mile maintenance puts you in the 20-25p per mile range me thinks.

Hintza

steve-L wrote: »

Do you have the Merc diesel engine? (I suspect not?)

No, I have the 2.8 Mitori engine. I had the Merc engine in the 3.0 Grand Cherokee.

45p/mile doesn't cover you though, it only covers you if you assume you are going to subsidise them via your fixed costs. This is the dilemma and ongoing discussion/argument I have with my OH.

My argument is that the SIL has the luxury in running around in her small car paying very little for it yet expects us to pay the full running costs of the big car, I just don't think it is fair.

At this stage I just don't know what is fair, in my view if she doesn't like it she always has the option of buying her own towing car and the we share the driving 50:50. Unsurprisingly she hasn't rushed to do that.

steve-L

Hintza wrote: »

No, I have the 2.8 Mitori engine. I had the Merc engine in the 3.0 Grand Cherokee.

45p/mile doesn't cover you though, it only covers you if you assume you are going to subsidise them via your fixed costs. This is the dilemma and ongoing discussion/argument I have with my OH.

My argument is that the SIL has the luxury in running around in her small car paying very little for it yet expects us to pay the full running costs of the big car, I just don't think it is fair.

At this stage I just don't know what is fair, in my view if she doesn't like it she always has the option of buying her own towing car and the we share the driving 50:50. Unsurprisingly she hasn't rushed to do that.

A bit more complex....
I guess 1st question to ask yourself is would you have the 4x4 anyway?
What is it you need to tow for SIL?
For example - if she owns a horse then I fully see your dilemma.
People who buy a boat/horse/livestock should factor in the requirement! To extend the analogy, if you have a garage you're not using would she expect it converting into a stable, sheep-fold, dry dock....

If your dilemma is she bought something with a mind that BIL will tow it for me... I see your annoyance!

What's fair would seem to be she pays some of the costs associated with you owning the 4x4.... but perhaps from her side she sees this as you get to drive around in the Cherokee ????

Only you know if you'd change car if SIL's requirement disappeared... and how much towing contributes to wear and tear....

Perhaps the question is less financial and more about being taken for granted?

colino

As you appear not to want to do it, just don't do it. Setting a charge will just compound the problem (if she's paying for the, "service" she'll expect it come hail, rain or shine). The HMRC figures were great - decades ago- and don't reflect the true running of most cars, apart from cheapest euroboxes.

david29dpo

She moves first THEN asks?

dktreesea

Why is it your sister can't learn how to drive and get a car?