Stop-gap car?

wyx087

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

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

Norman_Castle wrote: »

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.