If you drive your car for work, you’re probably aware that you can take a mileage deduction of 57.5 cents for every business-related mile. The most obvious daily vehicle-related expenditure rears its costly head every time you go to the pump. However, mileage reimbursement is for more than just gas money. You’re getting reimbursed for all auto expenses.
According to AAA’s 2015 Your Driving Costs research, in the United States, a driver can expect to spend 58 cents for each mile driven to cover the costs associated with owning and operating a car in 2015.
What other expenses, you ask? Well, you can’t just get a car and go drive, right? There are costs associated with owning a vehicle that add up to a hefty sum, but are easy to overlook. Let’s take a look at some of them, and the average associated cost of owning a typical sedan pulled from AAA’s research.
Finance Charges: ~$699/year
Unless you buy your car outright, you’ve probably paid finance charges. While rates dropped 21% from 2014, you can still expect to pay $15/mo on a typical five-year loan.
You’ve heard this before, the minute you drive a new car off a dealer’s lot, it loses value. Depreciation is the single largest ownership expense.
Insurance is probably the hardest to estimate because your driving habits are different than everyone else’s. Throw in all of the different insurance providers and where you live and you’ll find the rates all over the place.; and rising, in part, because of the amount of specialization needed to maintain modern safety features.
Maintenance: ~$766.50/year or ~5.11 cents/mile
Maintenance is the most obvious expense next to gasoline. Nobody wants their car to break down, and nobody gets excited for a trip to the auto shop. It appears that people are avoiding taking their car to the shop entirely, which might exacerbate issues.
Taxes and other state-level registration costs are often overlooked when considering the on-going cost of owning a vehicle. Among these costs are property taxes, title transfers, smog and emissions checks, and car registration.
These costs add up, right? All of a sudden accurately tracking that trip reimbursement seems a little more important.
Enter Automatic + Concur
Automatic accurately tracks your mileage for you making reimbursement effortless. Each expense includes important data: mileage, route map, start/end address, and even a visual receipt. When you push a trip to Concur, Automatic generates a unique trip summary and attaches it to an expense report of your choice.
Mike, a Director of Operations at a software company and an Automatic + Concur User says: “Automatic adds items to my expense report with departure and arrival locations, and maps that show my route. There is no way I’d be putting in this much additional detail if I were doing it manually.”
We want to make sure you have full control over your business trips, so you don’t miss out on a single cent of your mileage reimbursement.
To learn more about Automatic, visit the Concur App Center here.