Luxury Coach & Transportation

July 2018

Magazine for the professional limousine, charter and tour industry.

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22 LUXURY COACH & TRANSPORTATION JULY 2018 WWW.LCTMAG.COM F E D E R A L T A X E X E M P T I O N O N D I E S E L IRS Publication 510 (Rev. January 2016) Excise Taxes (Including Fuel Tax Credits and Refunds) The bus must have a seating capacity of at least 20 adults 1 888 266 3030 original driver got a hotel and slept. He met up with the bus the next day to take over again while the relief driver fresh driver took over for the original driver who jumped on a plane and traveled on to LAX. Once there, the A Guide to Determining Costs Before you can determine a sell price, you must be able to identify your costs to operate your vehicle down to an hourly cost. Jacobs says it's extremely important to keep historical data, such as how many hours a particular vehicle worked in the previous year, how many miles it traveled, and what the expenses were in operating the vehicle. He says repair and maintenance costs will in- crease each year as a vehicle ages, and you must factor that into your projected operating costs. Multiple Long Distance Drivers ompson's company, Santa Fe Valet (aka Accent New Mexico), is based in Santa Fe, and handles long distance tours that include trips to Las Vegas and Los Angeles. While the Vegas trip can be done in under 10 hours, a Los Angeles trip requires two drivers and a series of leap frogging drivers that keep the bus rolling. In a recent trip, ompson flew a driver to Phoenix in advance of his bus arriving there. After sleeping, the MOTORCOACHES: FINANCE WHAT IS THE BREAK-EVEN POINT ON MY MOTORCOACH? Sample Data In Calculation • 13 trips performed • 78 total hours of service • 1450 miles of travel Associated Hard Costs Cost To "Make Ready" • 13 washes/prep by detailer - $12/hour x 13 hours = $156 • Driver wages (including pre/post trip) — $15/hour x 104 hours = $1,560 • Fuel - 263 Gallons at $3.80 = $999.40 • Insurance (monthly premium) = $342 • Monthly vehicle payment = $3,942 Associated Soft Costs • Oil change ($150 per 6,000 miles) - .025 per mile x 1,450 = $36.25 • Tire replacement - ($450 per 100,000 miles) .0045 per mile x 1,450 = $39.18** • Tune-up - ($600 per 75,000 miles) .008 per mile x 1450 = $11.60 TOTAL BREAK-EVEN POINT = $7,086.43 Excludes employer payroll tax or workers' comp premium **Based on six tires Hourly break-even point: $7,086.43 / by 78 hours of service = Rate of $90.85 per hour OR $7,086.43 / 1,450 miles = $4.89 per mile

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