Spend Per Mile
Cost per mile is what your van costs to run in a year, divided by the miles it covers. Include fuel, tyres, servicing, insurance, tax, and depreciation. It is often two to three times the fuel figure.
What it means
People notice fuel, because they pay for it at the pump on the day. The rest of a van’s running cost arrives on a different bill, or on no bill at all. That covers tyres, servicing, insurance, road tax and depreciation. These costs rarely make it into the number an owner has in their head.
Work it out once a year. Add up all of those costs for the whole year. Then divide by the miles the van actually covered. That figure is what a mile of driving really costs the business. Use it for any travel decision, and ignore the fuel-only guess.
A van costs $6,500 a year to run, covering fuel, tyres, servicing, insurance, tax and depreciation. It covers 10,000 miles. That is $0.65 a mile. Fuel alone would suggest about $0.20.
Working out a van’s cost per mile from fuel receipts alone. Tyres, servicing, insurance, tax and depreciation usually add up to more than the fuel.
See also
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