Last Years Cost

[LTD]

...but the fact that it had supposedly dropped from c£45k to £15k in five years sure illustrates the true cost of depreciation

Too true.

Mine went from £74k to £10.5k in 6 years.

So far, in the two years I have owned it, my car has cost me around £1.8k in repairs/tyres/servicing. I look at petrol/tax and insurance as consumables.

That's £12.3k in two years of write down to zero. (£5.3k if I consider I'd wring £7k in a trade.)

Or £120 (£50) per week and falling each week I have the pleasure of owning it. Couldn't hire it for that.

 

[Dieselman]

Yes I assumed my car has depreciated £500 in 4 months.

That sounds a bit lean to me, mine took years to get down to £3k per annum depreciation, which is why I've depreciated it to zero. That way when I finally sell it I have a true cost without any nasty surprises and I no longer have a deprecation figure to bother about.

 

[Nasco12]

78ppm for me. That's including things like tools and depreciating to zero. Ach, things will be different next year.

 

[NewMB]

Depreciation is notional and will only come out of my pocket if I sell.

Very good point!

It's a reality none the less. I don't see how you can ignore the single largest cost.
I would love my car to have cost me 25p per mile, but it hasn't.

But that's like saying "I have lost £10K on the stockmarket" even though you still have not sold the actual shares and once you sell, that's when you will be out of pocket. Not before.

 

[Dieselman]

But that's like saying "I have lost £10K on the stockmarket" even though you still have not sold the actual shares and once you sell, that's when you will be out of pocket. Not before.

If you don't fully depreciate because you aren't selling, it is still only worth a certain value and until you sell you have lost that full value, as it's locked up in the car.
You can't spend the same money again.

The car isn't worth a lot now so it's better to be realistic.

 

[NewMB]

The car isn't worth a lot now so it's better to be realistic.

If you don't fully depreciate because you aren't selling, it is still only worth a certain value and until you sell you have lost that full value, as it's locked up in the car.
You can't spend the same money again.

Of course you are right. One should still include it I think, just like you say.

Either way, shares or cars can be a very expensive thing to own!

 

[Dieselman]

Of course you are right. One should still include it I think, just like you say.

Either way, shares or cars can be a very expensive thing to own!

You wouldn't buy say, £50K worth of shares knowing they were going to lose £10k per year and eventually end up at £200...even after spending the same again maintaining and running it.

Cars are just horrendous money pits....a bit like Endowment mortgages...

 

[NewMB]

Cars are just horrendous money pits....a bit like Endowment mortgages...

...or wifes, daughters, nieces etc

 

[Will]

That sounds a bit lean to me, mine took years to get down to £3k per annum depreciation, which is why I've depreciated it to zero. That way when I finally sell it I have a true cost without any nasty surprises and I no longer have a deprecation figure to bother about.

I think Shude's car must be near the bottom of the depreciation curve.

I'm pretty sure these CLK55 AMGs were around £60k or so new and MB only imported around 200 into the UK. So from what I gather Nick paid at this point (~ 10 years old?) I don't think he stands to lose much over the next few years.

Even at £500 per 4 months, it'd only take a few (4-5?) years to depreciate to zero, not that I expect it to become worthless

So £500 per 4 months/£1500 PA might be about right

 

[Shude]

I think Shude's car must be near the bottom of the depreciation curve.

I'm pretty sure these CLK55 AMGs were around £60k or so new and MB only imported around 200 into the UK. So from what I gather Nick paid at this point (~ 10 years old?) I don't think he stands to lose much over the next few years.

Even at £500 per 4 months, it'd only take a few (4-5?) years to depreciate to zero, not that I expect it to become worthless

So £500 per 4 months/£1500 PA might be about right

20% depreciation per year takes it from £65k new to £6.5k when it's 10 years old in a couple of months.

Seems like a reasonable figure to me.

 

[dtr]

^^ That's not too bad at all really at 50p/mile all in, though is 15% depreciation enough?

Mine is 43.8p/mile over many years, but I have depreciated the car to zero.

My percentage costs are

Depn = 43.1%
Fuel = 27.9%
Service = 14.9%
Insurance = 9.6%
Others = 4.5%

Now, if I could reduce the fuel and service to 1/5th, I'd be happy..with £16k extra in my pocket.

Drive an old Micra / Clio or Corsa like a nun? It should go towards that direction, leaving the fun side of motoring well behind

 

[Dieselman]

Drive an old Micra / Clio or Corsa like a nun? It should go towards that direction, leaving the fun side of motoring well behind

I was obviously thinking a lot further ahead with regards technology, than you are...

 

[fuzzer]

I work on the principle that my car cost the same as my W204 was going to cost for 4 tyres and a service..

Thus free as id have been chucking that money away anyway