We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Stop-gap car?

Options
12346»

Comments

  • wyx087
    wyx087 Posts: 25 Forumite
    F1F93 wrote: »
    But if you think your Merc will be worth £390 this time next year, give me a ring and I'll take it off your hands for £400 giving you £10 "profit!!"

    Then the following year I'll have to pay someone over a grand to take it off my hands...
    Haha, not sure how you came to that conclusion.


    That £1400 depreciation was calculated based on price difference between when I bought the car, and a few months ago, then divide by the number of years.


    Over next year, the depreciation of the Merc will probably be £500, next year £300, 3rd year £180. Car depreciation is like radiation half-life, roughly factor of 0.4 every 3 years.
  • Norman_Castle
    Norman_Castle Posts: 11,871 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 26 July 2017 at 5:45PM
    wyx087 wrote: »
    Over next year, the depreciation of the Merc will probably be £500, next year £300, 3rd year £180. Car depreciation is like radiation half-life, roughly factor of 0.4 every 3 years.
    So your ongoing average monthly cost would not be £378 which is what you were using to compare with a leased car.

    I'm not looking for a debate, just pointing out the error in your calculations. The Mercs depreciation will now mostly be down to its condition rather than age and miles so keeping it was a good choice.
  • wyx087
    wyx087 Posts: 25 Forumite
    So your ongoing average monthly cost would not be £378 which is what you were using to compare with a leased car.

    I'm not looking for a debate, just pointing out the error in your calculations. The Mercs depreciation will now mostly be down to its condition rather than age and miles so keeping it was a good choice.
    Yes you are right. It will not be £378 going forward. It had averaged £378 over last few years, the expected cost is decreasing as the car ages. The unexpected cost may increase though.


    The reason I used that value for comparison was because I needed to upsize. So rather than calculate future cost of my current car, I used previous costs to calculate whether the car I'm buying is affordable.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.