UKC

Forgive me if this reads like a O level maths question.
Considering starting a car share with 2 other folk. I'm struggling to work out costs so that its fair.
1 of these has a car and the other chap doesn't.
We have agreed that me and the first chap will rotate driving duties and therefore we won't have to pay costs.
Any ideas of the best way to arrange payment for the third chap?

its an 80 mile round trip
fuel costs around 70 for a week.
no parking costs.

In reply to goldmember:

Party without the car pays 50% of running costs, you and other driver pay 25% each - total contribution = 100%. If that doesn't seem a fair allocation of car costs, then adjust until it does : 60/20/20 70/15/15 etc

In reply to goldmember:

Pick a pence per mile rate (e.g. From the AA or the HMRC rate) and then the non-driver pays 1/3 of it each day to whoever is driving. I think that works....

In reply to goldmember:
Driver A pays one half of cost
Driver B pays one half of cost
Passenger C pays one sixth of cost to driver A
Passenger C pays one sixth of cost to driver B

Driver A & B both pay one half minus one sixth which is a third.
Passenger C pays one sixth twice which is also a third.

Edit - same as Rich K

In reply to goldmember:

As per what Rich said, take a standard mileage rate that takes into account fuel, insurance, wear and tear etc (usually 45p / mile), times by the mileage, then divide by three. That is what the 3rd person owes the driver each time, assuming the two drivers take is in turns.

In reply to goldmember:









You're gonna have equations coming out of your ears...

One of the clubs I'm in uses the rule that passengers pay for their share of the fuel, +50% (to account for insurance, road user tax, maintenance etc).
So in this case, you'd get your grand total of the petrol cost per day (let's say it's £30 for the day, for example)
This means each person pays £10 each, with an additional £5 each from the 2 passengers.
Since the other passenger is also a driver, you could work out an arrangement (if you both drive exactly equal amounts) whereby neither of you pays anything when being a passenger in the other vehicle, in exchange for traveling for free in the others car (or you pay petrol, but not the extra 50%).

Assuming you're good friends with the non-car owner, you can adjust the 50% number up or down depending on how well it reflects your costs over a few months.

In reply to BStar:


Exactly this. The 2 car owners cover their own costs on a reciprocal basis and the non car owner bungs £12 to whoever is driving on the day. Simple

In reply to BStar:


The HMRC rate of 45p/mile is for the first 10000 miles per year, 25p/mile after that.

The other ballpark way of estimating true vehicle expense is that it costs you double overall of the fuel cost. Its amazing how this has averaged out for me. New car /more depreciation/less repairs and vice versa.

The HMRC rates are quite cunning in that it encourages you to have an economical vehicle.

So perhaps work out a reasonable overall cost for the journey. Driver in his own car goes without charge. The other two split the cost between them and give it to the driver. Works well if one car is used more than the other.

In reply to SenzuBean:

I'd keep it simple and say the person who doesn't own the car should pay 50% of the fuel costs. So the two drivers spend about £75 a month each on fuel and the non-driver about £150. This is probably about right when you take into account the drivers other costs associated with running a car.

In reply to goldmember:

Use this calculator to work out the payment

https://liftshare.com/content/savings_calculator.asp

In reply to goldmember:
I'd say that the drivers are driving to work anyway, whether they are sharing or not, and assuming they are not going too far out of their way for pick-ups they should just split it three ways. I'm surprised this is even a question.