I want to know how to calculate the cost of using a vehicle per kilometer. Should depreciation be taken into account?
We have a company that gives employees money to use their vehicle.
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Hello Anthony,
Every company has its own way of calculating a cost price. However, it goes without saying that you have to include the costs for energy, insurance, but also maintenance costs, the model of the vehicle and depreciation based on an expected annual mileage.
I would also add that if it is an electric vehicle, the energy costs must be paid in the same way (or almost) as for a petrol-powered vehicle of the same category, taking into account the additional premium of buying an electric vehicle.
The good news is that depreciation is currently lower than usual, allowing you to offset increased energy and maintenance costs. These can also be easily calculated depending on the vehicle model.
You then decide whether to grant higher amounts for more maintenance-intensive vehicles. Because the difference from one model to another within the same model class can be colossal.