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by tzier 3918 days ago
$0.575/mi isn't a good indicator of actual cost. It's a method the IRS created to reduce the complexity of tracking all car expenses separately (good for both taxpayer and IRS). In most cases it's very generous. For example:

* ~$0.30 is for gas, but if you're driving a fuel efficient Prius then your actual per mile cost is lower ($3.00/gal / 50mpg = $0.06/mi; though offset by battery replacement cost, don't know how much that costs or how often) * If your car is over 5 years old, you wouldn't be able to claim depreciation on it. But the standard mileage rate includes depreciation, so you're getting to deduct additional cost if your car is >5 years and you use the standard mileage rate.

That's not to say wear and tear isn't a significant cost...just that your actual cost is usually much lower than the standard mileage rate.