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Calculating car depreciation

book12
book12 Posts: 2,557 Forumite
I am thinking of a buying a car in a few years time. However, that particular model isn't indicated on this website http://www.whatcar.com/car-depreciation-calculator

I always use that website to see how much it depreciate each year, so I know roughly what year I could buy it.

How do I calculate depreciation from year 0 to year 4 and beyond? What will be the formula?

Comments

  • bluesnake
    bluesnake Posts: 1,460 Forumite
    So no model and brand then! :wall:

    Often certain brands depreciate differently than other brands, so use that site as a ball park figure and look at similar models.
  • worried_jim
    worried_jim Posts: 11,631 Forumite
    10,000 Posts Combo Breaker
    bluesnake wrote: »
    So no model and brand then! :wall:

    crystalball_zps9a65328a.jpg
  • GJ_WRX
    GJ_WRX Posts: 117 Forumite
    Blue ones are best unless you got for the gttdti turbo hybrid xl
  • TradePro
    TradePro Posts: 652 Forumite
    book12 wrote: »
    I am thinking of a buying a car in a few years time. However, that particular model isn't indicated on this website http://www.whatcar.com/car-depreciation-calculator

    I always use that website to see how much it depreciate each year, so I know roughly what year I could buy it.

    How do I calculate depreciation from year 0 to year 4 and beyond? What will be the formula?

    If you're waiting for a Ferrari 458 Italia to reach £2,500, more than 4 years :D
    And that my son, is how to waft a towel!
  • motorguy
    motorguy Posts: 22,609 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    book12 wrote: »
    I am thinking of a buying a car in a few years time. However, that particular model isn't indicated on this website http://www.whatcar.com/car-depreciation-calculator

    I always use that website to see how much it depreciate each year, so I know roughly what year I could buy it.

    How do I calculate depreciation from year 0 to year 4 and beyond? What will be the formula?

    You cant calculate it because there are too many variables.

    If depreciation is a big worry to you, dont buy new. Typically you'll lose 50% of the value in the first 3 years.
  • CB1878
    CB1878 Posts: 93 Forumite
    The What Car guide is just that, a guide. There are far too many variables to know. If the manufacturer brings out a new version of the model then that is invariably more expensive than its predecessor, and it may also have an effect on the residuals of the older model. How can you know the manufacturers intentions that far ahead? If anyone could come up with a foolproof way of working it out they would be a very rich man.
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