So everybody else got their hybrid today?
The other day at work we got a notice that the 2008 IRS rate for mileage reimbursement was being increased to 50.5 cents per mile. For 2007 it was 48.5 cents per mile. Now it is my understanding that this is supposed to cover the cost of operating a vehicle for business purposes. So lets ponder that for a minute.
Let’s assume that there is no increase in maintenance costs for your vehicle (which isn’t true, but makes this a conservative calculation). That leaves changes in the cost of gasoline as the major contributor to the cost hike.
I drive a truck that gets about 16 miles per gallon (MPG). Given the vehicle I drive, and the increase of two cents per mile, this would cover the increase in cost of gasoline to the tune of 32 cents per gallon. But it turns out that in Colorado, the last year saw an increase of 73.8 cents per gallon, according to the Department of Energy. (That number will change weekly, I’m sure)
That means I would have to drive a car that got 36.9 MPG. More than twice what I actually get. So that got me thinking: “What kind of car would I have to drive to have the actual increase in cost covered?”
It turns out that, according to the EPA, for 2008 models, nothing but hybrids will hit 36.9 mpg. In fact, even most of the hybrids miss the mark. Only the hybrid Prius and Accord exceed that MPG rating.
“But wait!”, you say. “These numbers aren’t decided by Colorado! It is for the country as a whole!”
“Good point”, I say. For the US as a whole, it went up only 70.7 cents per gallon. So our meager improvement still only brings the necessary MPG rating to 35.3. That doesn’t change much related to the cars.
It just makes you wonder how they come up with these numbers.
