Is it too much to ask..........

Ultrasonic

DUTR wrote: »

Here is a real life example, the car before the current one I bought for £x it was 3 yrs old,then I sold it 3yrs later for £0.6x , the current car I purchased for £y and it will be up for sale soon, I won't be asking as much as similar examples for sale but should get £0.33y but then I have had this car nearly 9yrs, I can tell you that (x-o.33x)/3 is greater than (y-0.66y)/8 . Putting money to the figures y=around £140 month and x nearer £160 month neither car needed money spending over the usual running costs.

x and y need to be purchase prices not costs per month for that to make any sense, and I can't be bothered to work back through that overly complicated example to see what the real numbers are!

Motorguy's example is much more real world as he says.

A different way to look at it is this. The AA estimate year one depreciation to be 40%, so that's £4k on a £10k car. No car I have owned has cost me anything like that much in combined repair and depreciation over a 12 month period. That 40% figure is probably a bit of an overestimate as it probably relates to list price, but even dropping this to 30% my statement holds.

Ultrasonic

DUTR wrote: »

Mine was a real life example :eek:

Give us the numbers like Motorguy did then rather than making us do all of the work .

Ultrasonic

DUTR wrote: »

Here is a real life example, the car before the current one I bought for £x it was 3 yrs old,then I sold it 3yrs later for £0.6x , the current car I purchased for £y and it will be up for sale soon, I won't be asking as much as similar examples for sale but should get £0.33y but then I have had this car nearly 9yrs, I can tell you that (x-o.33x)/3 is greater than (y-0.66y)/8.

Just had another look at this. Surely the cost of ownsership comparison should be (x-0.6x)/3 compared to (y-0.33y)/8 (or possibly /9)?

motorguy

DUTR wrote: »

Remember we came here with nothing and so shall leave with nothing, enjoy each and everyone of those miles from the showroom until you wish to change again.

I hear too many stories of people save up and save up, then sadly pass away a week before they retire or shortly afterwards, then the survvors are fighting over what is left. Life is for living and enjoying, to me , you save money here to spend there.

Dont get me wrong - i've bought more than my fair share of new cars, and i'd have no issue with buying another new one - but not by justifying it as being cheaper than a nearly new one. We got the Golf used because it was going to work out considerably more expensive to buy new, and it didnt seem worth it. Its just the 'grunt' as it were. I do my 25,000 miles of commuting in it and it does the supermarket run at the weekend, that sort of stuff.

And yes, i'd rather save my money where appropriate to do so, to use in other places. For example i've an Audi A6 3.0i Quattro Avant to blast about in at the minute, and I'm looking at getting an oldish mx5 as a winter project - maybe do some track day work with it with my son come the new year. Both of those probably wouldnt have happened if i'd got a new golf instead of a used one. I saw nothing to make me think i wasnt going to be flushing that £6K or so difference down the toilet in the first few months or so of depreciation - and believe me i tried!

We change my wifes car every three years or so. Shes a new z4 with all the toys at the moment, and it worked out cheaper to buy it new than a used one - just because of the deals BMW had on on a new one at the time. Last time it was a Prodrive modded Subaru Impreza, before that a 3.0Si z4 Coupe, but she does tend to go for a good deal rather than just for the sake of it.

motorguy

Ultrasonic wrote: »

Give us the numbers like Motorguy did then rather than making us do all of the work .

Aye i dont knw why he had to make it so complicated.

DUTR

Ultrasonic wrote: »

Just had another look at this. Surely the cost of ownsership comparison should be (x-0.6x)/3 compared to (y-0.33y)/8 (or possibly /9)?

Nope, 1st car bought for X sold it for 0.6x 3 yrs later, current car bought for Y but selling for a 1/3rd of what I paid, but owned it longer, plug some numbers in, 2nd hand car £10k, sell for £6k 'loss' £4k /3 = £1333 per year.
new car £18k sell for £6k 'loss' = £12k/8 = £750 per year
and notice the £6k ? (even though it's worth less than 8 years ago).

motorguy

DUTR wrote: »

Nope, 1st car bought for X sold it for 0.6x 3 yrs later, current car bought for Y but selling for a 1/3rd of what I paid, but owned it longer, plug some numbers in, 2nd hand car £10k, sell for £6k 'loss' £4k /3 = £1333 per year.
new car £18k sell for £6k 'loss' = £12k/8 = £750 per year
and notice the £6k ? (even though it's worth less than 8 years ago).

Have you some sort of aversion to writing in plain english?

Ultrasonic

DUTR wrote: »

Nope, 1st car bought for X sold it for 0.6x 3 yrs later...

I'm afraid you are wrong. If you paid x for a car, and sold it for 0.6x then over the three year period the cost to you was x-0.6x, and so the average cost per year was (x-0.6x)/3 and NOT (x-0.33x)/3. (You get this right in your example below.)

...current car bought for Y but selling for a 1/3rd of what I paid, but owned it longer, plug some numbers in, 2nd hand car £10k, sell for £6k 'loss' £4k /3 = £1333 per year.
new car £18k sell for £6k 'loss' = £12k/8 = £750 per year
and notice the £6k ? (even though it's worth less than 8 years ago).

Those numbers make sense though. Although to properly compare you'd want to add in the cost of the first car for the 7th and 8th years, which would bring its average down.

I don't believe for a second that there is any way your second option wouldn't have worked out even cheaper if you'd bought the car at one year old and then sold it at 8 years old though.

Edit: The second option has worked out cheaper due to not including years 7-8 for option 1, and the slower depreciation of option 2. Neither of these have anything to do with owning the car from new.

DUTR

motorguy wrote: »

Have you some sort of aversion to writing in plain english?

It is in plain English, I'm not trying to sell you a concept, I'm just not as tight as you are, and not leaving buying a new car to somebody else all of the time, I've done it once and I'm doing it again (not sure I will manage a 3rd time but who knows I didn't plan to get the 2nd one, just circumstances allowed) .
Have you not noticed the recent 2nd hand car was only kept for 3 years?

DUTR

Ultrasonic wrote: »

I'm afraid you are wrong. If you paid x for a car, and sold it for 0.6x then over the three year period the cost to you was x-0.6x, and so the average cost per year was (x-0.6x)/3 and NOT (x-0.33x)/3. (You get this right in your example below.)

Those numbers make sense though. Although to properly compare you'd want to add in the cost of the first car for the 7th and 8th years, which would bring its average down.

I don't believe for a second that there is any way your second option wouldn't have worked out even cheaper if you'd bought the car at one year old and then sold it at 8 years old though.

Edit: The second option has worked out cheaper due to not including years 7-8 for option 1, and the slower depreciation of option 2. Neither of these have anything to do with owning the car from new.

Naturally it depends on the car being purchased, I've just looked on the VW site there is a 2nd hand car (all be it a few 100 miles)
for £29950 now I know you can get a higher spec brand new for less money.

Looking on autotrader a similar MK4 mileage etc is asking £1500-1600 which summarises what we both already know that the longer the vehicle is kept the less 'loss' , yes indeed I would have a wedge of cash sat in the bank earning little interest or I could have bought some stocks and worry about deprecation of those over the years. But for me , there was nowt else to do with the money but treat myself and allow somebody else to take ownership of a then nice car.