Ask an expert

Hi, I travel 60km per day (open road), four days a week, for my work commute.
There is a possibility that I can have a work car based at my house, but I would need to reimburse work for my commute. Between 20 and 25 cents per kilometers has been suggested.
If I did that, would I come out ahead?
I have a 2000, 1800 Funcargo with 70,000km on it.
Thanks.
Ps) when I use my car beyond the office for work, the payment is 40cents per km.

The work vehicle is an attractive offer as it would keep your vehicle's mileage down and this will help the resale value too. The 20 or 25 cents per km the company suggest as payment for your commute to work and back is reasonable. The running costs we work out are for newer vehicles (3-5 years of age) and for a 1.8L petrol car the running costs is calculated at 64.2 cents/km. Your vehicle is 13 years old so most of the depreciation has already occurred, and seeing that depreciation is a major factor for running costs calculation, realistically the running cost for your own vehicle is more likely to be around 42cents/km - but this is an unofficial rate as we do not calculate running costs for older vehicles. You should speak to your accountant for more advice but the company vehicle looks to be the better option.

Thanks for your reply and opinion. Much appreciated.