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![thomas](themes/aaAle/images/interface/profile-pic-placeholder.47cf740a.png)
Hi, I'm looking to offer a milage costs to our clients for the use of our vehicle. I'm looking for something fair and reasonable. I would like to simply have 2 rates – one below 100 km & one for100 km
can you advise please
![ABayliss](themes/aaAle/images/interface/profile-pic-placeholder.47cf740a.png)
I'm not quite sure what you're talking about when you refer to 2 rates depending on under or over 100km, as running cost is calculated per km.
It is however, a little difficult to calculate an exact running cost for a 10 year old vehicle, as depreciation is the main factor contributing to running cost, and a 10 year old vehicle has already depreciated significantly.
Assuming this vehicle is a 2.4 litre petrol, our running cost rate would have been 78.8c per km if the vehicle was in the order of 3-5 years old. The real running cost for a 10 year old vehicle such as this may only be around 50c per km.
FYI, the IRD allow 77c per km for all vehicles, although there are some stipulations such as mileage caps and the requirement to keep a log book etc.