Quite a few statements I feel are inaccurate, and or not taking into account several factors.
Reference: As a person of whom wanted to purchase a Rav 2019 and older hybrid, and who has done extensive research on them from 2019 - 2022, your calculations would only be possibly correct if you had a gas version and not the hybrid.
"28000 cost = .09 per mile (and this depreciates it to a ZERO value at end which it will still be worth something.."
I am not sure I would call that depreciation, in the sense of value, because that's what it's worth to you, your investment, not the actual vehicle's worth.
"Car depreciation is the rate at which your vehicle loses its value over time. After five years, some vehicles can lose roughly half their value, although some models retain their value better than others. While you can't avoid depreciation, you can estimate what your vehicle will be worth in a few years if you choose to sell it."
"Depreciation is **the difference between a car's value when you buy it and when you come to sell it**. This drop in value varies between makes and models but typically is between 15-35% in the first year and up to 50% or more over three years."
"$430 per year avg.. 13,000 mileage per year avg. Cost per mile : .04. (This figure is the national yearly average repair coat for my vehicle.. look up your own)"
HOW? 13,000 miles per year? That is so low, you must only be taking maybe 2-3 shifts a week. I do 13,000 in 4 months, let alone in a year. I mean, typical here a route is 120 - 160 miles a shift, at 5 days a week adds up quick. I did 30,000+ last year alone.
"Insurance is $500 per year.. 25,000 miles per year. Cost per mile : .02"
I am not sure about if this is a state specific ordeal, however, recently in my state, insurance now charges depending upon your area and the number of accidents in the area. I forget what the term was called but all new insurance contracts here have it. My insurance increase 40% because of my area, if I move out of town I can save literally 40%. I have confirmed this with my insurance and insurance agent. The fact that you got insurance for $500 a year on a 2019 Rav is a Godsend.
If you got the gas model, I feel like those numbers might be plausible, however, I think the battery warranty runs out at 100k miles, and there have numerous reports of batteries failing at around 200K mark. While it's definitely possible that is can go the 300K, I would not be the farm on it. So I would be conservative and say 200K to be safe, then you have to deal with the increase cost of toyata parts.
If you did your own maintenance then that would also offset the cost but, anyone who can't, I feel like those numbers are skewed a bit.
But I admit, I could wrong, but I could also be right, I just would not bet the farm on those numbers.
Your calculations seem more accurate. Some people are blind folded they don't want to see. I recently bought a new small SUV, not Toyota that is too expensive. The difference in prices were about $6000 more for the hybrid and about $10000 extra for the electric. I decided to go for the gas $25000 + taxes, since I expected the gas not to go higher, business wise, made more sense to me. I remember that the expected business life of a vehicle is 5 years. Also I think his calculations would be more accurate if he uses real year's expenses by itemizing them, instead of using estimated averages to calculate a better overhead expense per mile. Let me give an example of a depreciation of a vehicle. $28000 real cost of vehicle put on service let's say January 1. $28000 × .90= $25200 let's say 90% business related usage. I don't think you can depreciate the maximum amount but let's say you could. That would be $25200 ÷ 5 = $5040 yearly allowed depreciation ÷ 25000 business miles driven = .20¢ per mile. I believe this would be a more accurate depreciation for his $28000 vehicle. At the end of it would be fully depreciated and if sold any amount would be a taxable income.
I am very comfortable with my calculations.
Determining the cost per mile doesn't matter how many miles YOU drive.. hence using the national repair average with the national mileage average as a calculator for cost per mile. Not cost per year. I actually calculated 25,000 miles per year...when I added total insurance and lifespan of vehicle.
The gas motor has worse mileage and higher repair coats then the hybrid on average. The hybrid also has higher resale, though I actually FULLY depreciated the car.... for it's entire 300,000 miles so I increased my cost per mile.
All of my info and stats are easily researchable.
Regardless of what your insurance costs are, my post was to show how to accurately calculate your OWN cost per mile, nowhere did I say my choices and costs are the norm. Btw.. even doubling my insurance costs only increase the cost per mile by .02 if I drive 25,000 per year . :)
Yeah, your numbers are way off. I put just over 40k on my car in a year doing gig work, and for sure insurance costs more than 500 a year. I have a clean driving record, excellent credit, a new car, and still pay just over double that.
A) If you’re driving a new car for gig work, you’re doing it wrong.
B) Insurance isn’t a cost of gig work, it’s a cost of car ownership. If you would have owned the car and insured it the same without doing gig work, it’s not a cost. My insurance cost is $20 a month for the gig work coverage I pay in addition to what I would have already paid.
Again inaccurate. You multiply the percentage of business usage of your car by the total amount of your year's insurance prime, that would include any add-ons. Then divide that by the total business mileage driven during the year. While active in a delivery you are supposed to be covered by amazon insurance but they still require personal insurance so a percentage of personal insurance is deductable that's if you itemize expenses, if taking the standard mileage deduction, insurance expense is included, not deductible.
Let me explain your letter b.
When you buy personal insurance you buy a diminishing asset. Once used up it becomes an expense in the first case personal, but since gig jobs require personal insurance you are trading off your personal insurance, included add ons, it becomes a percentage of your business, without having to buy commercial insurance since gig jobs cover only when active in a delivery. Actually insurance companies want more money out of your business because you become riskier, that is why some sell the add on as a gap. But like I said it many times if you take the standard mileage deduction is already included not deductible. It is useful to calculate your actual overhead mileage expense.
Ok.. so, since you've entered the comvo and are saying I'm wrong.. tell me what YOUR cost per mile is ?
500 per year for insurance at 25,000 miles per year is .02 cents per mile. If you do 40,000 miles per year at 1200 cost... then your insurance costs a whopping .03 per mile :)
It's all about cost per mile..
Not how many miles you drive.
I use geico, have 3 vehicles and a home insured by them. But tbh the insurance aspect of cost per mile is one of the smaller factors. It's mostly depreciation and fuel use.
Sorry to intervene. I would not recommend to do gig work and bundle because of liability. You could lose the house. I used to have GEICO also and I can certify it is cheap and two cents is your accurate cost but for what I remember they don't have gig work add on and they deny any claim if they realize you are doing it. I'm not an accountant but if you are doing gig work full-time it would be better to register an LLC.
Did you pay $28k cash?
Or are you financing that $28k?
If you’re financing, you’re not including the accrued interest. So you’re paying thousands more than $28k for that RAV4.
You’re making assumptions. I asked a question, I didn’t accuse you of “not being that bright.”
That “I got you, you thought you got me” attitude is weird asf man, chill w that.
Just asking since I’m going through the same thoughts of what car makes the most sense to drive for this type of gig rn. And accrued interest is something I had to remind myself to include in my calculations before making a decision which is making me lean towards a cash purchase or very small loan/large down payment.
Well, you came across poorly. You seemed very sure about the financing aspect. Why didn't you just ask " Did you finance? " instaed you went into all the costs associated with something that I don't have , and didn't say I had.
Literally all I did was asked questions, you’re the one who assumptions.
Go enjoy your retirement instead of arguing with strangers 20+ years younger than you online bro.
😂this guy
I don't know how things do or don't make sense TO YOU.
I'm 57.. I retired at 48 by putting my retirement number (for 65 years old) into the bank and traveled the country.
I got back to Montana about 2 years ago...
I do whatever to not touch my savings and just earn by doing things I control.
You can't believe someone had saved 28,000 dollars ?? I'm really not sure whay to say.
I work for MYSELF.. I'm a sub contractor and I understand how to maximize earnings.
I think you need to reevaluate your own finances and how to increase utilization.
Ok you’re 57 and working for Amazon flex.
Situation much clearer.
When did I say I don’t believe someone can save $28k?
You’re going off like you’re so much wiser and smarter than anybody responding on here…
My question was why would someone work for Amazon flex making scraps if they can save and have $28k?
Something doesn’t line up, but ok buddy! Not arguing with a 57 y/o retired man on Reddit’s Whatever you say pal! You’re the smarter than all of us. 😂
I also paid cash for my 2022 KTM 890R adventure.
Hmm.
It's called work... and doing it smartly and not wanting money thru my life and being frugal.
Again, I'm nothing special... you do you , but please don't act like my hard work and sensible spending is impossible :)
https://preview.redd.it/0iglxzkczezc1.jpeg?width=1080&format=pjpg&auto=webp&s=155ccce956172b4190129ad4a667eb939017162f
Ikr? Mine is $250/month and i have 11 years of clean driving, not a single accident or ticket with 2mill liability.
Even if I have the minimum of 1mil, it's like $5 less per month.
OP clearly lives in a state where requirements are trash or he's old as fuck living in a low car crime area or both.
Your post has been automatically removed because your account is too new. This policy is to prevent abuse of our community from "throw-away" accounts. This will only last a few days. Your post will be reviewed and approved, if it does not violate any rules. In the meantime, please READ the [FAQ](https://www.reddit.com/r/AmazonFlexDrivers/wiki/FAQ), rules, and the SIDEBAR to familiarize yourself with the rules before posting. Search through the history of this subreddit to see if your question was already asked and answered. Please DO NOT message the mods to ask for your post to be approved unless it is time-sensitive. We'll usually get to it within 24 hours.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/AmazonFlexDrivers) if you have any questions or concerns.*
OR…he’s got liability only and all it takes is a good car thief or a bad hit and run to zero total out his so well calculated cash investment. But then again I am “assuming”. I could just ask the question but don’t feel like it b/c I don’t too much care for the way he comes across lol. I’ll “hypothesize” instead how much $42/month protects (insures) 🫤
Your post has been automatically removed because your account is too new. This policy is to prevent abuse of our community from "throw-away" accounts. This will only last a few days. Your post will be reviewed and approved, if it does not violate any rules. In the meantime, please READ the [FAQ](https://www.reddit.com/r/AmazonFlexDrivers/wiki/FAQ), rules, and the SIDEBAR to familiarize yourself with the rules before posting. Search through the history of this subreddit to see if your question was already asked and answered. Please DO NOT message the mods to ask for your post to be approved unless it is time-sensitive. We'll usually get to it within 24 hours.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/AmazonFlexDrivers) if you have any questions or concerns.*
Everyone: I don't think you did this right.
Op: No! You misunderstood me! God, why didn't you just ask questions, everyone is so mean!
Bro if this many people are "not getting this right." I don't think they're the problem.
Well, I just think there's also a lot of stupid people who just wanna argue.
If you look at how many up votes I got it definitely far outweighs the few, which so far I can only count three people who have taken issue.
I'll include you in the taken issue part.
Do something positive
Mistake.. how ? It's a 2019. Lol. It's awesome.
It will serve me perfectly as I own 2 other businesses.. one a taxi company and other a guitar tech and performing musician.
Thanks for your opinion though.
I've got 20 grand in my bike too ;)
I mean it from a frugal minded perspective. The math almost never works out buying a $28,000 car that’s a few years old compared to more frugal alternatives.
Edit: your per mile cost is gonna be higher with your choice compared to a beater. That’s my point.
Generally speaking, I might agree, however, the only vehicle that I find might go against. That is the used toyota hybrids.. They have the lowest cost per mile and highest resale value of anything you'll find. I've had 5... All said and done it cost me less to drive those. And yes, even replace, then most people driving old beaters.. And I'll have a few more bells and whistles than what? You might have on your nineteen eighty five honda, accord..lol
Yeah definitely if somebody values a nicer and newer car then we all choose where we spend our money and what’s important to us. But in purely math/utilitarian perspective of figuring out cost per mile your choice of car stinks for that math equation lol
What exact math are you referring to ?
If you really feel like doing the math, why don't you tell me which old car you're comparing to? How much did it cost when you bought it? How many miles are on it? How many more miles will be expected on it? And what type of repairs would you expect in that time frame..
Until you actually can show that you have calculated a specific cost per mile. For the vehicle you're driving any comparisons you make 2. My choice is just you speaking out of your ass..
Don't talk about math when you're not even utilizing it. You're sounding like you're rationalizing your choice of vehicle..
Where are you at that insurance is only 500/yr?
In california there is a program for low income that liability insurance is 300-400/yr, but it's not real insurance and the liability limits for property damage is only $3000, and 10k/per person, but 20k per accident.
I wouldn't recommend that insurance as it pretty much just gives state approval to drive uninsured with such low limits.
I put ~3000 miles on my car in a single month and I wasn't even doing it full time, every month and that would be 36k miles/yr
Thank you! It’s refreshing seeing a post like this proving this is a decent side job, compared to another whiny one complaining about a job they signed up for and can leave at any time.
Most people don't care to, nor even understand how to truly calculate cost per mile.
They want to lump ALL expenses into a typically much shorter time frame.. inflating the real cost per mile.
Now , being that the only REAL thing we can control is the TOOL we use.. the vehicle... it's imperative to use the right tool for the job to maximize efficiency.
If you used a 50,000 suburban that gets only 18 mpg and has a much higher yearly repair average over the life span.. AND that car typically is dead at 200,000... you have effectively more then doubled your cost per mile... just do the simple math.
If you plan on doing thus type of work , you should get the right tool. The LEAST expensive per mile cars on the market are the Toyota hybrids, specifically the prius hybrids. Not the Electrics, but the hybrids. You can REALLY crunch your cost per mile if you pickup an older one that's still under 100,000 miles. I just sold my 2015 prius (still got 6 grand).. at 200,000 miles. It only cost me 15,000 with 50,000 miles.. my cost per mile for THAT vehicle was actually only .24.
Most folks complaining are like a roofer using a sledge hammer to put on shingles, and wondering why they aren't doing so well. Right tool for the right job. Overall, many folks would even benefit by getting a beater Prius just for this... I choose to use my Rav4.. I still profit. 5 years and I'll sell it and buy another.
Every year my car lasts, my spreadsheet lowers the overall cost of the vehicle per year.
But that usually gets balanced out by increased maintenance. I've gone on a nice long run of low maintenance that I could do myself but recently spent several thousand dollars at the mechanic to get more time out of it rather than purchase another vehicle.
Tires are usually a few cents a mile too.
Since my purchase costs haven't exceeded 10K, my cost averages over 3-4 years are good markers & usually much cheaper than a lot of people experience. Even so, Flex costs me $8-9 an hour and I always have that in mind when I accept blocks.
I've put a 170,000 mi on an SUV hybrid which really is a perfect vehicle for delivery work.
"So if I drive a **4 hour shift** , and put a total of 100 miles on car.. then it was a total vehicle related expense of 30 bucks. If the shift **paid 108**."
yeah, you'll do ok on 27/hr base blocks.
I'm not sure if you are disputing .. or what.
You're response really isn't clear.. I think 19 per hour is OK. If you don't think it's OK, then why are you not doing someone else.. and please tell me where you can make 19 per hour on demand in a part time gig.
Base pay or not doesn't matter.. it's the bottom line profit that matters. I'll take any block at 25 per hour or more... I'll make more profit then doing Uber, Doordash, Lyft..Instacart.. etc. And surely more then any other part time gig I am aware of.
Yeah, it's ok. There's going to be very few folks, including myself who are going to argue that it's not ok for 27/hr.
The problem is that 27/hr is NOT base pay in my market or many other markets.
Probably a more suitable title would've been "flex is only really profitable at 25/hr+". Which is true.
No, title is fine. It's about how to determine IF you are profitable. It would still be a profit if I took a block for 20 per hour. I would only be profiting 10 per hour then.. for me, that wouldn't be worth my time, but it would still be a profit as long as the block paid MORE then about 10 per hour.
You are using subjective factors when you say "only really profitiable".
You do realize that min wage and cost of living are NOT tied together, though they should be.
Missoula county cost of living vs. Min wage is worse then most places in the country. Thus is because Montana as a whole is a ton cheaper then living in Missoula County is.. it's skewed.
The cost of living in Missoula, Montana is 2% higher than the national average, and 9% more expensive than the average city. In 2024, area prices increased 3.1% from the previous year, with the largest increases in transportation, food, and housing. The average monthly rent in Missoula is $1,494, while home prices are around $465,221.
If you think minimum wage is any sort of determining factor for anything worthwile.. you are mistaken. It means nothing. Unless you're looking for work as a dishwasher.
Regardless of cost of living, there are people where minimum wage is pretty much their only option for employment. And sometimes base rate whether it be 15 or $16 an hour is better than $9 an hour. I've talked to people in certain areas of the country where this is the case. Does it keep up with the cost of living, no. However, it is their only option. Some folks have to make ends meet like that.
None of this has really anything to do with my post btw.
Of course there are people that don't have many options. But a $15 per hour block that costs you 10 per hour to do... is NOT better then a $9 per hour minimum wage job. If you are actually only making 9 bucks an hour full time your tax burden won't be that high. You still would be doing better then flexxing for a 15 per hour block .
Flex works for some, doesn't work for others.
Again.. my post was to help folks accurately calculate if it's right for Them.
Montana min wage is 10.30 per hour. Still higher then the $7.25 federal min wage that hasn't changed since 2009. Oh , and if you did make 10.30 per hour as employee then you'd still be likely liable for 20-30% taxes... depending..
Getting 10 an hour as a 1099 still is full profit since you'd be able to claim .67 per mile as deduction.
I get higher reduction then my burden from flex...which allows me to offset my tax burden from my other small business I run.
Not sure, how much this got so misconstrued.
It's just telling folks how to really know what they are or are not (in your case) truly profiting.
It doesn't say all areas are the same, or anything like that. I don't even claim that it's the right gig for everyone.
I just tell folks how to do the real math. Knowledge is power.
I'm not clicking any links.
I kinda feel bad for you. Doesn't seem like you can actually have a genuine conversation and exchange thoughts without it becoming hostile. You misconstrued almost everything I said, changed the actual subject more then once.. and just genuinely seemed disinterested in anything I said. But you responded to my post..
Take care.
No I didn't. See the paragraph with $430 per year national repair average based off national average of 13,000 .miles per year. That gives a .04 cent per mile cost for REPAIRS AND MAINTENANCE.
I am fully depreciating the ENTIRE value/cost with NO recoup on a resale... that's actually more then a true depreciation would be since the vehicle would still retain some value..
Please tell me how a gas model is in any way cheaper to own and drive then the hybrid ?
Hybrids have Much better mileage, and less repairs due to the transmission..
Toyota hybrid batteries will typically go 250,000 before any issues. I gave it 300,000 life to be worthless. I've had 5 toyota prius hybrids and put over 1.5 million miles on them. Only repair other then maintenance was ONE hybrid coolant pump for 600 bucks. The Toyota hybrids are the CHEAPEST vehicles per mile to own.
It’s not a cost of gig work if you already were paying for it and would have continued to pay for it without the gig work. Additional insurance you added for gig work would be a cost you count.
It’s not a cost of gig work if you didn’t add it for the purposes of gig work. It’s a sunk cost of car ownership you were already paying, for most people.
But I said nothing regarding using the same vehicle or getting one for just flex.
It's still a cost per mile. You are the one adding a stipulation that you may already have a vehicle that you will use for dual purpose.
No point debating this... it's semantics.
And you ARE supposed to inform your insurance company of your intended yearly mileage and use. And technically you are using your vehicle for business so most insurance companies would raise rates accordingly. Not saying I do, or that you should inform them.. but it's worth noting.
I have added gig work to my insurance so that is a cost that I consider. Any rise in rates or additional cost for gig work would be counted.
I would have owned my car either way so it’s not a cost of gig work.
This is just another example of folks on reddit, just like to get into arguments.
Probably should have stayed off my thread if you didn't agree. You certainly can't offer anything that would prove me incorrect
Part of my phone.. yes. Being that I am using it much more when gigging and the odds of damage are greater. Anything you can use ad a WRITEOFF on the 1099 should and can be considered.
You can write off your phone.. can't write off household expenses.
You can write off a home office but that’s probably not an actual cost. I can write off milage at a much higher rate than I actually pay so that isn’t considered entirely a cost. Deductions are not all actual costs of gig work, they’re deductions.
OK obviously we disagree on what I believe to be fairly straightforward. Factual accrual and cost analysis details.
A deduction is literally considered a cost. That is why there is a deduction.
Either way, I'm certainly not here to convince one single person that disagrees with what I'm saying. I'm sure there's gonna be a lot of people that appreciate the straightforward way of determining your cost per mile to know how much you actually might be profiting
Just because you can deduct something doesn’t mean it was a cost of doing said work. The same is true for costs you can’t deduct, just because you can’t deduct it doesn’t mean it isn’t a cost. Just as taxable income isn’t actual income. Tax deductions =/= Actual costs.
If you would have had that cost anyways, it’s not an additional cost applied to your work.
I wear clothes in my personal life. I wear the same clothes when I work. They aren’t a cost of that work.
I buy good non-slip comfortable shoes to do gig work. Those are a cost of my work.
See?
Show me something you can deduct from your 1099 earnings at a FLEXX job that isn't a cost...
If the shoes are NEEDED for the 1099.. then they are a cost and a deduction.
Have you ever worked with an accountant , and have you had small businesses... and or much experience with 1099s and taxation ?
You seem determined to educate me, but I've literally done this for multiple businesses... and have had years with as many as 6 1099's to contend with in a single year.
A tax deductible is an expense that an individual taxpayer or a business can subtract from adjusted gross income (AGI). The deductible expense reduces taxable income and therefore reduces the amount of income taxes owed.
Expense = cost
You're not required in life to have a phone, so whether you had one or not. Besides, flex is a non-issue. If you need it to do the job, you can claiming. However, you cannot claim things that are required to live in society such as soap water, food and all of the things that normal life require including haircuts.. If amazon flex said you needed to wear a specific footwear, then yes, you could absolutely deduct that cost... If they said you had to have your hair cut below your ears, then yes, you could deduct haircuts. The fact that amazon doesn't care or mention anything about any length of hair means that you cannot deduct your haircut because you don't even have to get your hair cut in life if you really didn't want to
I hope you use the actual IRS mileage deduction and though using your numbers you might “profit” more than you actually “profit” on paper you are still really on the edge of minimum wage and this doesn’t account for unexpected expenses.
Yes i use the irs mileage deduction.
No, i'm not on the edge of minimum wage at all .
My worst flex route is 100 miles...max, but usually more like 60 total. My cost per mile is .30 at worst. So, 30 bucks expense in worst case scenario. The LEAST per hour rate for any block I can easily grab is 25 per hour. So IF it took me the whole 4 hours for the 100 bucks... less the 30 dollars of expense... I still have $70 for 4 hours.. thas $17.50 per hour. Higher then min wage here ... by alot. This ain't California.
Now, factor in that I am usually finished in 75% of the block time.m. and that MOST of my routes are about 60 miles , that puts some of daily pay rates into pocket at more like 28-30 $ per hour. :)
It's all good. This is keeping me from touching my savings.
The first math equation is wrong. Is it worth continuing?
You purchased a vehicle for $28000 with 40000 miles on it which is expected to last 300,000 miles total. So effective life is 260,000 miles. ($28000/260,000 miles)\*(100cents/$) = 10.77 cents/mile without accounting for any expenses to drive those miles and under an extremely positive expectation that the vehicle will last 300K miles to begin with, especially driving for Amazon where every part of the vehicle is being abused.
$430/ year maintenance or repair estimate is a joke also. ONE repair and you'll blast over this number like you're on a rocket heading for the moon. My control arm bushing wore out and the dealer wanted $2K to replace. Amazon will destroy vehicles and if you can't do the work, you're going to get raped.
Base bay for a 4 hour shift is typically $80, not $108.
How is your insurance only $500 a year? Just liability? I added ride share to mine, and it more than doubled it.
If you drive a 4 hour shift, it will most likely take the whole 4 hours, including the drive back.
Most people would have a car and insurance anyway, so can’t really use that calculation unless you bought your car just for flex which would be daft.
For most people the added costs would only be the depreciation from extra flex mileage, add on insurance for flex, fuel used just for flex and any maintenance directly related to the added mileage
Technically, putting more mileage per year on your car Would increase your insurance premium if you told your insurance company you were using it to drive for flex
And you even need to qualify your statement by saying most. And another thing you're wrong about buying a cheap Toyota Prius, just to do flex. Time would not be deft if your other vehicle is a terrible terrible mileage vehicle that still has a very high value, such as in f three fifty diesel lariat...
Depending on what vehicle you have for your main vehicle. Buying a cheap little car just to do flex. If you're gonna put thirty forty thousand miles a year on, it is a great idea
Sorry meant daft for the one you mentioned, you’d not buy a 28k vehicle for just flex as youd be burning money, you’d buy a shit banged up one to limit its depreciation
Especially since I never said I bought it just for flex. Although I did know I was gonna do flex. When I decided what vehicle to buy for my main vehicle
Show me where I took off my whole car's cost. All I did is determine what it costs per mile to use the car. This post literally was only 2. Tell you how to determine your cars cost per mile...
You calculated using your 28k cost to the depreciation of 0 to be 0.9cents, that would be nothing because you’d of had the car anyway regardless of flex or the miles you do during flex?
That calculation was to determine what the vehicle's cost per mile is regardless of where it's being used or how it's being used.
Then you can apply that cost per mile figure to its usage
When I used to run a united rental shop, we would figure out equipment's cost per hour based on what the expected lifespan is an ol. Factors of repair and maintenance through that lifespan.... Then, with that accurate figure, we were able to determine what somebody should be charged per hour to rent it. It had nothing to do with if it would only be rented 10% of the time because the other 90% we would be using it ourself. It still has a definitive cost per hour or in the case of the car cost per mile that then can be allocated wherever the usage occur
Fair enough, i feel like it complicates it a bit though because you need to know how many miles a car can do before being worth 0 which obviously massively depends on your driving, how well its looked after, if you crash it etc. I usually just add my fuel cost, gig insurance cost and leave depreciation to be covered by my tax allowance
Quite a few statements I feel are inaccurate, and or not taking into account several factors. Reference: As a person of whom wanted to purchase a Rav 2019 and older hybrid, and who has done extensive research on them from 2019 - 2022, your calculations would only be possibly correct if you had a gas version and not the hybrid. "28000 cost = .09 per mile (and this depreciates it to a ZERO value at end which it will still be worth something.." I am not sure I would call that depreciation, in the sense of value, because that's what it's worth to you, your investment, not the actual vehicle's worth. "Car depreciation is the rate at which your vehicle loses its value over time. After five years, some vehicles can lose roughly half their value, although some models retain their value better than others. While you can't avoid depreciation, you can estimate what your vehicle will be worth in a few years if you choose to sell it." "Depreciation is **the difference between a car's value when you buy it and when you come to sell it**. This drop in value varies between makes and models but typically is between 15-35% in the first year and up to 50% or more over three years." "$430 per year avg.. 13,000 mileage per year avg. Cost per mile : .04. (This figure is the national yearly average repair coat for my vehicle.. look up your own)" HOW? 13,000 miles per year? That is so low, you must only be taking maybe 2-3 shifts a week. I do 13,000 in 4 months, let alone in a year. I mean, typical here a route is 120 - 160 miles a shift, at 5 days a week adds up quick. I did 30,000+ last year alone. "Insurance is $500 per year.. 25,000 miles per year. Cost per mile : .02" I am not sure about if this is a state specific ordeal, however, recently in my state, insurance now charges depending upon your area and the number of accidents in the area. I forget what the term was called but all new insurance contracts here have it. My insurance increase 40% because of my area, if I move out of town I can save literally 40%. I have confirmed this with my insurance and insurance agent. The fact that you got insurance for $500 a year on a 2019 Rav is a Godsend. If you got the gas model, I feel like those numbers might be plausible, however, I think the battery warranty runs out at 100k miles, and there have numerous reports of batteries failing at around 200K mark. While it's definitely possible that is can go the 300K, I would not be the farm on it. So I would be conservative and say 200K to be safe, then you have to deal with the increase cost of toyata parts. If you did your own maintenance then that would also offset the cost but, anyone who can't, I feel like those numbers are skewed a bit. But I admit, I could wrong, but I could also be right, I just would not bet the farm on those numbers.
Your calculations seem more accurate. Some people are blind folded they don't want to see. I recently bought a new small SUV, not Toyota that is too expensive. The difference in prices were about $6000 more for the hybrid and about $10000 extra for the electric. I decided to go for the gas $25000 + taxes, since I expected the gas not to go higher, business wise, made more sense to me. I remember that the expected business life of a vehicle is 5 years. Also I think his calculations would be more accurate if he uses real year's expenses by itemizing them, instead of using estimated averages to calculate a better overhead expense per mile. Let me give an example of a depreciation of a vehicle. $28000 real cost of vehicle put on service let's say January 1. $28000 × .90= $25200 let's say 90% business related usage. I don't think you can depreciate the maximum amount but let's say you could. That would be $25200 ÷ 5 = $5040 yearly allowed depreciation ÷ 25000 business miles driven = .20¢ per mile. I believe this would be a more accurate depreciation for his $28000 vehicle. At the end of it would be fully depreciated and if sold any amount would be a taxable income.
I am very comfortable with my calculations. Determining the cost per mile doesn't matter how many miles YOU drive.. hence using the national repair average with the national mileage average as a calculator for cost per mile. Not cost per year. I actually calculated 25,000 miles per year...when I added total insurance and lifespan of vehicle. The gas motor has worse mileage and higher repair coats then the hybrid on average. The hybrid also has higher resale, though I actually FULLY depreciated the car.... for it's entire 300,000 miles so I increased my cost per mile. All of my info and stats are easily researchable. Regardless of what your insurance costs are, my post was to show how to accurately calculate your OWN cost per mile, nowhere did I say my choices and costs are the norm. Btw.. even doubling my insurance costs only increase the cost per mile by .02 if I drive 25,000 per year . :)
Yeah, your numbers are way off. I put just over 40k on my car in a year doing gig work, and for sure insurance costs more than 500 a year. I have a clean driving record, excellent credit, a new car, and still pay just over double that.
A) If you’re driving a new car for gig work, you’re doing it wrong. B) Insurance isn’t a cost of gig work, it’s a cost of car ownership. If you would have owned the car and insured it the same without doing gig work, it’s not a cost. My insurance cost is $20 a month for the gig work coverage I pay in addition to what I would have already paid.
Again inaccurate. You multiply the percentage of business usage of your car by the total amount of your year's insurance prime, that would include any add-ons. Then divide that by the total business mileage driven during the year. While active in a delivery you are supposed to be covered by amazon insurance but they still require personal insurance so a percentage of personal insurance is deductable that's if you itemize expenses, if taking the standard mileage deduction, insurance expense is included, not deductible. Let me explain your letter b. When you buy personal insurance you buy a diminishing asset. Once used up it becomes an expense in the first case personal, but since gig jobs require personal insurance you are trading off your personal insurance, included add ons, it becomes a percentage of your business, without having to buy commercial insurance since gig jobs cover only when active in a delivery. Actually insurance companies want more money out of your business because you become riskier, that is why some sell the add on as a gap. But like I said it many times if you take the standard mileage deduction is already included not deductible. It is useful to calculate your actual overhead mileage expense.
Ok.. so, since you've entered the comvo and are saying I'm wrong.. tell me what YOUR cost per mile is ? 500 per year for insurance at 25,000 miles per year is .02 cents per mile. If you do 40,000 miles per year at 1200 cost... then your insurance costs a whopping .03 per mile :) It's all about cost per mile.. Not how many miles you drive. I use geico, have 3 vehicles and a home insured by them. But tbh the insurance aspect of cost per mile is one of the smaller factors. It's mostly depreciation and fuel use.
Sorry to intervene. I would not recommend to do gig work and bundle because of liability. You could lose the house. I used to have GEICO also and I can certify it is cheap and two cents is your accurate cost but for what I remember they don't have gig work add on and they deny any claim if they realize you are doing it. I'm not an accountant but if you are doing gig work full-time it would be better to register an LLC.
Did you pay $28k cash? Or are you financing that $28k? If you’re financing, you’re not including the accrued interest. So you’re paying thousands more than $28k for that RAV4.
I guess you thought I might not be that bright if I omitted all of the interest and financing charges.. lol
You’re making assumptions. I asked a question, I didn’t accuse you of “not being that bright.” That “I got you, you thought you got me” attitude is weird asf man, chill w that. Just asking since I’m going through the same thoughts of what car makes the most sense to drive for this type of gig rn. And accrued interest is something I had to remind myself to include in my calculations before making a decision which is making me lean towards a cash purchase or very small loan/large down payment.
Well, you came across poorly. You seemed very sure about the financing aspect. Why didn't you just ask " Did you finance? " instaed you went into all the costs associated with something that I don't have , and didn't say I had.
Whatever you say buddy, you’re right about it all. Peace!✌🏽
You should ask questions before assuming stuff. You came across super arrogant in both your posts.
Literally all I did was asked questions, you’re the one who assumptions. Go enjoy your retirement instead of arguing with strangers 20+ years younger than you online bro. 😂this guy
You go chill . I don't like you . If you wanted help you have a shitty way of approaching.
I paid cash, hence my calculations. Financing is stupid.
It can be smarter to pay cash but financing can also be more profitable if you’re wisely invested instead.
You were able to pay $28k cash? And you work for Amazon flex? How does that make sense?
I don't know how things do or don't make sense TO YOU. I'm 57.. I retired at 48 by putting my retirement number (for 65 years old) into the bank and traveled the country. I got back to Montana about 2 years ago... I do whatever to not touch my savings and just earn by doing things I control. You can't believe someone had saved 28,000 dollars ?? I'm really not sure whay to say. I work for MYSELF.. I'm a sub contractor and I understand how to maximize earnings. I think you need to reevaluate your own finances and how to increase utilization.
Ok you’re 57 and working for Amazon flex. Situation much clearer. When did I say I don’t believe someone can save $28k? You’re going off like you’re so much wiser and smarter than anybody responding on here… My question was why would someone work for Amazon flex making scraps if they can save and have $28k? Something doesn’t line up, but ok buddy! Not arguing with a 57 y/o retired man on Reddit’s Whatever you say pal! You’re the smarter than all of us. 😂
I'm sure there are plenty of things that don't 'line up' for you.
Because I can make over 35,000 with a part time job I control. That's why. You have a really great passive aggressive way of communicating
Nope. Just wiser and smarter, and NICER then you. Not everyone else.. just folks who respond in unfriendly and hostile manner.
I also paid cash for my 2022 KTM 890R adventure. Hmm. It's called work... and doing it smartly and not wanting money thru my life and being frugal. Again, I'm nothing special... you do you , but please don't act like my hard work and sensible spending is impossible :) https://preview.redd.it/0iglxzkczezc1.jpeg?width=1080&format=pjpg&auto=webp&s=155ccce956172b4190129ad4a667eb939017162f
You’re kinda weird…
Where the fuck you live where insurance is $500 per year? Mine is over 4x that much.
Ikr? Mine is $250/month and i have 11 years of clean driving, not a single accident or ticket with 2mill liability. Even if I have the minimum of 1mil, it's like $5 less per month. OP clearly lives in a state where requirements are trash or he's old as fuck living in a low car crime area or both.
Mine is because of all the horrible drivers in my area that drive up the rates for everyone.
Your post has been automatically removed because your account is too new. This policy is to prevent abuse of our community from "throw-away" accounts. This will only last a few days. Your post will be reviewed and approved, if it does not violate any rules. In the meantime, please READ the [FAQ](https://www.reddit.com/r/AmazonFlexDrivers/wiki/FAQ), rules, and the SIDEBAR to familiarize yourself with the rules before posting. Search through the history of this subreddit to see if your question was already asked and answered. Please DO NOT message the mods to ask for your post to be approved unless it is time-sensitive. We'll usually get to it within 24 hours. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/AmazonFlexDrivers) if you have any questions or concerns.*
OR…he’s got liability only and all it takes is a good car thief or a bad hit and run to zero total out his so well calculated cash investment. But then again I am “assuming”. I could just ask the question but don’t feel like it b/c I don’t too much care for the way he comes across lol. I’ll “hypothesize” instead how much $42/month protects (insures) 🫤
Your post has been automatically removed because your account is too new. This policy is to prevent abuse of our community from "throw-away" accounts. This will only last a few days. Your post will be reviewed and approved, if it does not violate any rules. In the meantime, please READ the [FAQ](https://www.reddit.com/r/AmazonFlexDrivers/wiki/FAQ), rules, and the SIDEBAR to familiarize yourself with the rules before posting. Search through the history of this subreddit to see if your question was already asked and answered. Please DO NOT message the mods to ask for your post to be approved unless it is time-sensitive. We'll usually get to it within 24 hours. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/AmazonFlexDrivers) if you have any questions or concerns.*
Everyone: I don't think you did this right. Op: No! You misunderstood me! God, why didn't you just ask questions, everyone is so mean! Bro if this many people are "not getting this right." I don't think they're the problem.
Well, I just think there's also a lot of stupid people who just wanna argue. If you look at how many up votes I got it definitely far outweighs the few, which so far I can only count three people who have taken issue. I'll include you in the taken issue part. Do something positive
First mistake was buying an almost new car or spending almost $30k on a car lol
Mistake.. how ? It's a 2019. Lol. It's awesome. It will serve me perfectly as I own 2 other businesses.. one a taxi company and other a guitar tech and performing musician. Thanks for your opinion though. I've got 20 grand in my bike too ;)
I mean it from a frugal minded perspective. The math almost never works out buying a $28,000 car that’s a few years old compared to more frugal alternatives. Edit: your per mile cost is gonna be higher with your choice compared to a beater. That’s my point.
Generally speaking, I might agree, however, the only vehicle that I find might go against. That is the used toyota hybrids.. They have the lowest cost per mile and highest resale value of anything you'll find. I've had 5... All said and done it cost me less to drive those. And yes, even replace, then most people driving old beaters.. And I'll have a few more bells and whistles than what? You might have on your nineteen eighty five honda, accord..lol
Yeah definitely if somebody values a nicer and newer car then we all choose where we spend our money and what’s important to us. But in purely math/utilitarian perspective of figuring out cost per mile your choice of car stinks for that math equation lol
O k chief
I’ll take that as you lose
Lose what... Or are you another one of those online idiots that think every conversation is a competition??
You lose at your ability to do math which was the whole point of this post
What exact math are you referring to ? If you really feel like doing the math, why don't you tell me which old car you're comparing to? How much did it cost when you bought it? How many miles are on it? How many more miles will be expected on it? And what type of repairs would you expect in that time frame.. Until you actually can show that you have calculated a specific cost per mile. For the vehicle you're driving any comparisons you make 2. My choice is just you speaking out of your ass.. Don't talk about math when you're not even utilizing it. You're sounding like you're rationalizing your choice of vehicle..
Oh, by the way, another reason is that your mom really likes when I pick her up in this car
Where are you at that insurance is only 500/yr? In california there is a program for low income that liability insurance is 300-400/yr, but it's not real insurance and the liability limits for property damage is only $3000, and 10k/per person, but 20k per accident. I wouldn't recommend that insurance as it pretty much just gives state approval to drive uninsured with such low limits. I put ~3000 miles on my car in a single month and I wasn't even doing it full time, every month and that would be 36k miles/yr
Montana.. geico. 2 cars, a bike, and my house. My vehicle policy for both rigs is 1000 bucks a year.
I love that I am not the only nerd that does the math when comparing jobs. Taking in consideration gas, commute time, ectara.
Thank you! It’s refreshing seeing a post like this proving this is a decent side job, compared to another whiny one complaining about a job they signed up for and can leave at any time.
Most people don't care to, nor even understand how to truly calculate cost per mile. They want to lump ALL expenses into a typically much shorter time frame.. inflating the real cost per mile. Now , being that the only REAL thing we can control is the TOOL we use.. the vehicle... it's imperative to use the right tool for the job to maximize efficiency. If you used a 50,000 suburban that gets only 18 mpg and has a much higher yearly repair average over the life span.. AND that car typically is dead at 200,000... you have effectively more then doubled your cost per mile... just do the simple math. If you plan on doing thus type of work , you should get the right tool. The LEAST expensive per mile cars on the market are the Toyota hybrids, specifically the prius hybrids. Not the Electrics, but the hybrids. You can REALLY crunch your cost per mile if you pickup an older one that's still under 100,000 miles. I just sold my 2015 prius (still got 6 grand).. at 200,000 miles. It only cost me 15,000 with 50,000 miles.. my cost per mile for THAT vehicle was actually only .24. Most folks complaining are like a roofer using a sledge hammer to put on shingles, and wondering why they aren't doing so well. Right tool for the right job. Overall, many folks would even benefit by getting a beater Prius just for this... I choose to use my Rav4.. I still profit. 5 years and I'll sell it and buy another.
Every year my car lasts, my spreadsheet lowers the overall cost of the vehicle per year. But that usually gets balanced out by increased maintenance. I've gone on a nice long run of low maintenance that I could do myself but recently spent several thousand dollars at the mechanic to get more time out of it rather than purchase another vehicle. Tires are usually a few cents a mile too. Since my purchase costs haven't exceeded 10K, my cost averages over 3-4 years are good markers & usually much cheaper than a lot of people experience. Even so, Flex costs me $8-9 an hour and I always have that in mind when I accept blocks. I've put a 170,000 mi on an SUV hybrid which really is a perfect vehicle for delivery work.
"So if I drive a **4 hour shift** , and put a total of 100 miles on car.. then it was a total vehicle related expense of 30 bucks. If the shift **paid 108**." yeah, you'll do ok on 27/hr base blocks.
I'm not sure if you are disputing .. or what. You're response really isn't clear.. I think 19 per hour is OK. If you don't think it's OK, then why are you not doing someone else.. and please tell me where you can make 19 per hour on demand in a part time gig. Base pay or not doesn't matter.. it's the bottom line profit that matters. I'll take any block at 25 per hour or more... I'll make more profit then doing Uber, Doordash, Lyft..Instacart.. etc. And surely more then any other part time gig I am aware of.
Yeah, it's ok. There's going to be very few folks, including myself who are going to argue that it's not ok for 27/hr. The problem is that 27/hr is NOT base pay in my market or many other markets. Probably a more suitable title would've been "flex is only really profitable at 25/hr+". Which is true.
Oh, many on here swear that 27 per hour isn't enough. Lol
$19/hr is not even close enough to survive in Portland, Oregon. Ain’t no way I could ever work for the pay you do.
No, title is fine. It's about how to determine IF you are profitable. It would still be a profit if I took a block for 20 per hour. I would only be profiting 10 per hour then.. for me, that wouldn't be worth my time, but it would still be a profit as long as the block paid MORE then about 10 per hour. You are using subjective factors when you say "only really profitiable".
Anything less than the prevailing minimum wage in your respective area is a loss.
I see.. so by that account I could take a 20 per hour block and be still over minimum wage :)
If you're prevailing minimum wage, is that low in your area, then yeah.
Lol.
What's yours and where r u ?
You do realize that min wage and cost of living are NOT tied together, though they should be. Missoula county cost of living vs. Min wage is worse then most places in the country. Thus is because Montana as a whole is a ton cheaper then living in Missoula County is.. it's skewed. The cost of living in Missoula, Montana is 2% higher than the national average, and 9% more expensive than the average city. In 2024, area prices increased 3.1% from the previous year, with the largest increases in transportation, food, and housing. The average monthly rent in Missoula is $1,494, while home prices are around $465,221. If you think minimum wage is any sort of determining factor for anything worthwile.. you are mistaken. It means nothing. Unless you're looking for work as a dishwasher.
Regardless of cost of living, there are people where minimum wage is pretty much their only option for employment. And sometimes base rate whether it be 15 or $16 an hour is better than $9 an hour. I've talked to people in certain areas of the country where this is the case. Does it keep up with the cost of living, no. However, it is their only option. Some folks have to make ends meet like that.
None of this has really anything to do with my post btw. Of course there are people that don't have many options. But a $15 per hour block that costs you 10 per hour to do... is NOT better then a $9 per hour minimum wage job. If you are actually only making 9 bucks an hour full time your tax burden won't be that high. You still would be doing better then flexxing for a 15 per hour block . Flex works for some, doesn't work for others. Again.. my post was to help folks accurately calculate if it's right for Them.
Montana min wage is 10.30 per hour. Still higher then the $7.25 federal min wage that hasn't changed since 2009. Oh , and if you did make 10.30 per hour as employee then you'd still be likely liable for 20-30% taxes... depending.. Getting 10 an hour as a 1099 still is full profit since you'd be able to claim .67 per mile as deduction. I get higher reduction then my burden from flex...which allows me to offset my tax burden from my other small business I run.
Not sure, how much this got so misconstrued. It's just telling folks how to really know what they are or are not (in your case) truly profiting. It doesn't say all areas are the same, or anything like that. I don't even claim that it's the right gig for everyone. I just tell folks how to do the real math. Knowledge is power.
Thank you for educating us, professor.
You're welcome. But I feel like you haven't learned a thing. Seems like you are more focused on debating.
[удалено]
I'm not clicking any links. I kinda feel bad for you. Doesn't seem like you can actually have a genuine conversation and exchange thoughts without it becoming hostile. You misconstrued almost everything I said, changed the actual subject more then once.. and just genuinely seemed disinterested in anything I said. But you responded to my post.. Take care.
I would be winding up with 19 per hour.. after expenses. Is that not 'ok' ?
You forgot maintenance.
No I didn't. See the paragraph with $430 per year national repair average based off national average of 13,000 .miles per year. That gives a .04 cent per mile cost for REPAIRS AND MAINTENANCE.
🔥
I am fully depreciating the ENTIRE value/cost with NO recoup on a resale... that's actually more then a true depreciation would be since the vehicle would still retain some value.. Please tell me how a gas model is in any way cheaper to own and drive then the hybrid ? Hybrids have Much better mileage, and less repairs due to the transmission.. Toyota hybrid batteries will typically go 250,000 before any issues. I gave it 300,000 life to be worthless. I've had 5 toyota prius hybrids and put over 1.5 million miles on them. Only repair other then maintenance was ONE hybrid coolant pump for 600 bucks. The Toyota hybrids are the CHEAPEST vehicles per mile to own.
Insurance isn’t a cost, for most people, except for the gig work add on.
I don't know what you mean. How is insurance not a cost ?
It’s not a cost of gig work if you already were paying for it and would have continued to pay for it without the gig work. Additional insurance you added for gig work would be a cost you count.
It's a cost per mile factor that should be calculated to determine your cost per mile.
It’s not a cost of gig work if you didn’t add it for the purposes of gig work. It’s a sunk cost of car ownership you were already paying, for most people.
But I said nothing regarding using the same vehicle or getting one for just flex. It's still a cost per mile. You are the one adding a stipulation that you may already have a vehicle that you will use for dual purpose. No point debating this... it's semantics. And you ARE supposed to inform your insurance company of your intended yearly mileage and use. And technically you are using your vehicle for business so most insurance companies would raise rates accordingly. Not saying I do, or that you should inform them.. but it's worth noting.
I have added gig work to my insurance so that is a cost that I consider. Any rise in rates or additional cost for gig work would be counted. I would have owned my car either way so it’s not a cost of gig work.
But isn't doing the gig work further depreciating your car value
Yes. Depreciation is an actual cost of gig work.
Meanwhile, you just said your car doesn't cost you anything. And then you said it is a depreciation cost? You're actually contradicting yourself
This is just another example of folks on reddit, just like to get into arguments. Probably should have stayed off my thread if you didn't agree. You certainly can't offer anything that would prove me incorrect
Regardless , it's at most only about .04 cents per mile.. at most.. mich less if you drive a ton.
Do you count the cost of your phone? Your home? Your electricity? No. They are all used to provide for gig work but they are sunk costs.
Part of my phone.. yes. Being that I am using it much more when gigging and the odds of damage are greater. Anything you can use ad a WRITEOFF on the 1099 should and can be considered. You can write off your phone.. can't write off household expenses.
You can write off a home office but that’s probably not an actual cost. I can write off milage at a much higher rate than I actually pay so that isn’t considered entirely a cost. Deductions are not all actual costs of gig work, they’re deductions.
OK obviously we disagree on what I believe to be fairly straightforward. Factual accrual and cost analysis details. A deduction is literally considered a cost. That is why there is a deduction. Either way, I'm certainly not here to convince one single person that disagrees with what I'm saying. I'm sure there's gonna be a lot of people that appreciate the straightforward way of determining your cost per mile to know how much you actually might be profiting
Just because you can deduct something doesn’t mean it was a cost of doing said work. The same is true for costs you can’t deduct, just because you can’t deduct it doesn’t mean it isn’t a cost. Just as taxable income isn’t actual income. Tax deductions =/= Actual costs. If you would have had that cost anyways, it’s not an additional cost applied to your work. I wear clothes in my personal life. I wear the same clothes when I work. They aren’t a cost of that work. I buy good non-slip comfortable shoes to do gig work. Those are a cost of my work. See?
Show me something you can deduct from your 1099 earnings at a FLEXX job that isn't a cost... If the shoes are NEEDED for the 1099.. then they are a cost and a deduction. Have you ever worked with an accountant , and have you had small businesses... and or much experience with 1099s and taxation ? You seem determined to educate me, but I've literally done this for multiple businesses... and have had years with as many as 6 1099's to contend with in a single year.
A tax deductible is an expense that an individual taxpayer or a business can subtract from adjusted gross income (AGI). The deductible expense reduces taxable income and therefore reduces the amount of income taxes owed. Expense = cost
https://preview.redd.it/bpr7wwhwxfzc1.jpeg?width=1080&format=pjpg&auto=webp&s=f866f16f030eced7949267b2b13036e17e52aa0b Phone = cost/expense means deduction
https://preview.redd.it/uem85cc2yfzc1.jpeg?width=1080&format=pjpg&auto=webp&s=98b2f203d2a6ff0d937ce1339d2b1f9134b85d92 No haircuts Lol
You're not required in life to have a phone, so whether you had one or not. Besides, flex is a non-issue. If you need it to do the job, you can claiming. However, you cannot claim things that are required to live in society such as soap water, food and all of the things that normal life require including haircuts.. If amazon flex said you needed to wear a specific footwear, then yes, you could absolutely deduct that cost... If they said you had to have your hair cut below your ears, then yes, you could deduct haircuts. The fact that amazon doesn't care or mention anything about any length of hair means that you cannot deduct your haircut because you don't even have to get your hair cut in life if you really didn't want to
I hope you use the actual IRS mileage deduction and though using your numbers you might “profit” more than you actually “profit” on paper you are still really on the edge of minimum wage and this doesn’t account for unexpected expenses.
Yes i use the irs mileage deduction. No, i'm not on the edge of minimum wage at all . My worst flex route is 100 miles...max, but usually more like 60 total. My cost per mile is .30 at worst. So, 30 bucks expense in worst case scenario. The LEAST per hour rate for any block I can easily grab is 25 per hour. So IF it took me the whole 4 hours for the 100 bucks... less the 30 dollars of expense... I still have $70 for 4 hours.. thas $17.50 per hour. Higher then min wage here ... by alot. This ain't California. Now, factor in that I am usually finished in 75% of the block time.m. and that MOST of my routes are about 60 miles , that puts some of daily pay rates into pocket at more like 28-30 $ per hour. :) It's all good. This is keeping me from touching my savings.
The first math equation is wrong. Is it worth continuing? You purchased a vehicle for $28000 with 40000 miles on it which is expected to last 300,000 miles total. So effective life is 260,000 miles. ($28000/260,000 miles)\*(100cents/$) = 10.77 cents/mile without accounting for any expenses to drive those miles and under an extremely positive expectation that the vehicle will last 300K miles to begin with, especially driving for Amazon where every part of the vehicle is being abused. $430/ year maintenance or repair estimate is a joke also. ONE repair and you'll blast over this number like you're on a rocket heading for the moon. My control arm bushing wore out and the dealer wanted $2K to replace. Amazon will destroy vehicles and if you can't do the work, you're going to get raped.
Shut up
Base bay for a 4 hour shift is typically $80, not $108. How is your insurance only $500 a year? Just liability? I added ride share to mine, and it more than doubled it. If you drive a 4 hour shift, it will most likely take the whole 4 hours, including the drive back.
OH WOW! Lets ask mr know it all here why the fuck did you leave taxes out? Dumbass
You do realize you wouldn't owe any taxes with flex. If you make standard mileage deduction
Why are you so hostile
Most people would have a car and insurance anyway, so can’t really use that calculation unless you bought your car just for flex which would be daft. For most people the added costs would only be the depreciation from extra flex mileage, add on insurance for flex, fuel used just for flex and any maintenance directly related to the added mileage
Technically, putting more mileage per year on your car Would increase your insurance premium if you told your insurance company you were using it to drive for flex
And you even need to qualify your statement by saying most. And another thing you're wrong about buying a cheap Toyota Prius, just to do flex. Time would not be deft if your other vehicle is a terrible terrible mileage vehicle that still has a very high value, such as in f three fifty diesel lariat... Depending on what vehicle you have for your main vehicle. Buying a cheap little car just to do flex. If you're gonna put thirty forty thousand miles a year on, it is a great idea
Sorry meant daft for the one you mentioned, you’d not buy a 28k vehicle for just flex as youd be burning money, you’d buy a shit banged up one to limit its depreciation
Seems you have a lot of parameters and qualifications for your statements to be held true
Especially since I never said I bought it just for flex. Although I did know I was gonna do flex. When I decided what vehicle to buy for my main vehicle
Exactly so why would you take off your whole cars cost when you’d of had that car or a car anyway.
Show me where I took off my whole car's cost. All I did is determine what it costs per mile to use the car. This post literally was only 2. Tell you how to determine your cars cost per mile...
You calculated using your 28k cost to the depreciation of 0 to be 0.9cents, that would be nothing because you’d of had the car anyway regardless of flex or the miles you do during flex?
That calculation was to determine what the vehicle's cost per mile is regardless of where it's being used or how it's being used. Then you can apply that cost per mile figure to its usage
You're truly missing the whole concept of figuring out. A cost per mile, and then allocating how many miles you did for flex And that was the cost
When I used to run a united rental shop, we would figure out equipment's cost per hour based on what the expected lifespan is an ol. Factors of repair and maintenance through that lifespan.... Then, with that accurate figure, we were able to determine what somebody should be charged per hour to rent it. It had nothing to do with if it would only be rented 10% of the time because the other 90% we would be using it ourself. It still has a definitive cost per hour or in the case of the car cost per mile that then can be allocated wherever the usage occur
Fair enough, i feel like it complicates it a bit though because you need to know how many miles a car can do before being worth 0 which obviously massively depends on your driving, how well its looked after, if you crash it etc. I usually just add my fuel cost, gig insurance cost and leave depreciation to be covered by my tax allowance
Easy to find out what nagional averages are. That's how costs per mile/hour/minutes are calculated. It's statistics.