$23.00
- Thread starter timo
- Start date
windingtrailgal
Active member
I would never wanna figure something like that out. Would make me feel too crappy! For those who had a great riding season, am happy for ya. For me? not so much!
Actually your cost per mile is more like $4 since you would depreciate an asset over three years for 50% of its value, depending on your business and applicable tax laws. Of course if in the next 5 years you total 11200 miles, then it cost you $1/mile.
Your calculation is correct if you sold your sled for $0, meaning it was 100% depreciated and worth no resale value.
Your calculation is correct if you sold your sled for $0, meaning it was 100% depreciated and worth no resale value.
$7.62 for every mile here.
When you're riding the perfect trail it seems worth it....today, not so much.
When you're riding the perfect trail it seems worth it....today, not so much.
windingtrailgal
Active member
If I even understood what amo said I might feel worse!? All I know is that I didn't get to ride much this season no matter how much per mile! 
And if you did include gas, food, lodging etc it would be even that much uglier...
And if you did include gas, food, lodging etc it would be even that much uglier...
Your calculation is correct if you sold your sled for $0, meaning it was 100% depreciated and worth no resale value. In actuality your sled's market depreciation was prolly about $2500 so divide that by 485 and your cap cost was about $5 mile not including incrmetal cost on insurance, hotel, food, gas, oil, deprecation on the travel vehicle, and many other costs... Any wonder why snowmobiling can be so expensive and unaffordable?
I think a more accurate model might be:
Sled $10k 50% depreciated after 3 years = $5k sell price
Miles = 3000
Insurance 3 yrs = $300
Gas 200gal based on 15 MPG @ $3.5 = $700
Hotel - 4 trips per year @ $100/night = $1200
Oil = 8 fillling @$30 = $240
Food 4 trips @ 30/day at 8 days a year/3 yrs = $720
Tow vehicle costs = 1200 miles a year or 3600 miles or about 15% annual mileage on a $20 vehicle approx $3600 (might be a little high)
Gas for tow vehicle 3yrs @ 4 trips @ 300 miles @ 13 mpg = 92 gallons/yr @ $3.5 = $969
Total cost $11859
Total Miles 3000
Cost per mile $3.95
I think a more accurate model might be:
Sled $10k 50% depreciated after 3 years = $5k sell price
Miles = 3000
Insurance 3 yrs = $300
Gas 200gal based on 15 MPG @ $3.5 = $700
Hotel - 4 trips per year @ $100/night = $1200
Oil = 8 fillling @$30 = $240
Food 4 trips @ 30/day at 8 days a year/3 yrs = $720
Tow vehicle costs = 1200 miles a year or 3600 miles or about 15% annual mileage on a $20 vehicle approx $3600 (might be a little high)
Gas for tow vehicle 3yrs @ 4 trips @ 300 miles @ 13 mpg = 92 gallons/yr @ $3.5 = $969
Total cost $11859
Total Miles 3000
Cost per mile $3.95
F
fusion
Guest
Well, it's not a business, so no tax writeoff, so $4 is not a good estimate. But you would probably not use the full $11,400 in the calculation, since the sled has a residual value after service life, as in, "how long do you plan to keep it"?
In this case, to calculate actual cost per mile for one year, figure current value if sled is sold on open market today, subtract that value from cost basis, (1 yr. depreciation) and divide by your 485 miles. This is the true cost to ride for this year alone. Not including gas, oil and lodging of course. In a business, these costs are not considered part of an assets capitalized value, so you wouldn't include them in the basis, but for total cost per mile - why not make yourself feel max pain?
Yes - I happen to account for fixed assets at a corp., just one of my many acctg. functions.
F
fusion
Guest
Indy - negative.....unless you consider the sled worthless right now, your calculation is incorrect.
Let's say you either got a very bad deal and paid too much for the sled, or hammered the heck out of it and now it's worthless. Then your cost per mile for the asset itself would be:
$1600 divided by 2200 miles = $0.727/mile
More realistically, a sled like that will depreciate less quickly the older it gets, assuming it still runs. Lets say it's now worth $1200, meaning you could sell it today for that price. Cost per mile would be:
$1600-$1200 = $400 1 yr. depreciation
$400 divided by 2200 miles = $0.182/mile
Capeche?
Let's say you either got a very bad deal and paid too much for the sled, or hammered the heck out of it and now it's worthless. Then your cost per mile for the asset itself would be:
$1600 divided by 2200 miles = $0.727/mile
More realistically, a sled like that will depreciate less quickly the older it gets, assuming it still runs. Lets say it's now worth $1200, meaning you could sell it today for that price. Cost per mile would be:
$1600-$1200 = $400 1 yr. depreciation
$400 divided by 2200 miles = $0.182/mile
Capeche?
indy_500
Well-known member
I just rounded up for the sake of all the money I stuck into it. imo it's worth 1800 right now.
windingtrailgal
Active member
OK...what I meant was SURE I can calculate all of that...and I guess it's kind of cool if you have that kind of time (me? I watch eagles on a webcam!??! :O) or inclincation. But why bum yourself out with the statistics if you know you didn't get to ride much this season??
Got to ride on the Harley today - that took some of the sting out of just some 500 miles on the sleds!
Got to ride on the Harley today - that took some of the sting out of just some 500 miles on the sleds!
my sled got 1100 trailer miles and only 230 trail miles this year, which really sucks, but we just built and moved to a new house in the middle of JAN and have a baby due in 3 weeks so getting to ride at all was a miracle this year. AND my 4 year old got to ride for 60 of those miles so it was about the SMILES not the miles for me. my theory on $/mile is TOO HIGH to caculate, if you figure everything like that you will never do anything cause its all to costly anymore.
Lets change the perspective a bit.. First, look at your paycheck and all the money that's taken out for taxes, social security etc.. Now, look at that gorgeous sled in the garage, and remember how much fun you had every $23 mile, and how long that smile was on your face when you were riding the nice new sled down a perfect snowy trail!!
Not to get morbid, but what if you're not here next season.. Sometimes the best thing to do is spend the cash on something you really enjoy..
Not to get morbid, but what if you're not here next season.. Sometimes the best thing to do is spend the cash on something you really enjoy..
polarisrider1
New member
$23/mile. That is the worse math I have ever seen to figure actual cost per mile. What are you riding that has zero end value? I figure a buck a mile for depreciation and about a buck a mile to cover the rest. But on my off trail days when I ride less than 60-70 miles in the mtns. I actually make money. (Saving = earning in my book.) You never see a Mountain sled parked outside a Physcologist office do you? or a Harley for that matter.
northmnsledder
New member
Some how all your calculations are incorrect to me..........Because to me riding is priceless!!!