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andybritton

If the IRD rate for reimbursement to 5000km is 77c/km, how much of this is roughly for capital cost ie the depreciation and finance component? The rest being the fuel and other costs.

thanks

ABayliss

I can't speak for the IRD and obviously, the fewer kilometres the fixed costs (such as capital outlay and depreciation) are spread over, the higher percentage component they make up. Suffice to say, these costs are a significant component.
As an AA Member, you are entitles to receive a free copy of the annual AA Running Cost report which breaks all the true operating cost components down quite clearly. We calculate the running costs over 14,000km pa rather than 5,000km, as this is more in line with the average NZ motorist's annual vehicle usage.
You can obtain this online at My AA, or email us at aatech@aa.co.nz and we will email you a copy.