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Hi there, is the IRD considering issuing a different rate for Hybrid vehicles? and what is a reasonable mileage rate to pay as an employer? An employee using <5000 kms a year for work purposes has changed to a hybrid but we are still paying the same rate as their older vehicle.

Hi there,
We are not sure what the IRD have in the pipelline. However our studies have shown the hybrids generally have a higher operating cost factor, due to the higher buying price.
Our runing costs are based on new vehicles for the first 5 years of ownership.
So purchase price and depreciation are a large factor for calculating operating costs.

Thanks Cade, so if the car is a 2nd hand Hybrid, approx. 8 years old, what would you estimate the fuel and running costs would work out to be?