Depreciation question (not the usual though)
Discussion
I own a 1998 S-plate C2 used at weekends only. I commute to work by train with my company paying but they may not fund this any longer so I need to decide whether to drive in or not.
I bought it for £35k from a dealer 2.5 years ago (with 35k miles) and expect it to be worth now, at best, £25k if sold privately (with 42k miles). Assuming that the original dealer costs and 'tiny' profit were about £4k, that would mean that underlying depreciation is about £2.5k a year even with very low mileage.
So, will driving 15k miles a year instead of 3k really add that much to the rate of depreciation at this point? I've already worked out the extra maintenance and consumables costs.
Am I over analysing this and should just f****** drive it for a change?
I bought it for £35k from a dealer 2.5 years ago (with 35k miles) and expect it to be worth now, at best, £25k if sold privately (with 42k miles). Assuming that the original dealer costs and 'tiny' profit were about £4k, that would mean that underlying depreciation is about £2.5k a year even with very low mileage.
So, will driving 15k miles a year instead of 3k really add that much to the rate of depreciation at this point? I've already worked out the extra maintenance and consumables costs.
Am I over analysing this and should just f****** drive it for a change?
Drive it, love it, forget about any depreciation - you only live once.
However, if you want to look into the analysis:
Based on 12K miles per year (national average), you car "should" have done 108K miles. Currently, you have only done 42K miles so you have 66K miles "grace" in the car.
If you keep it for another, say, 3 years & stack on 20K per year, your car would still have done only 102K miles - it will still be 42K miles below the "average" mileage for cars of that age (assuming 12 years old at that point).
As Henry says - "buy on condition, not mileage". Assuming you keep the service history up & keep the car in top condition you will see little, if any, incremental depreciation if you use it, enjoy it & service it.
However, if you want to look into the analysis:
Based on 12K miles per year (national average), you car "should" have done 108K miles. Currently, you have only done 42K miles so you have 66K miles "grace" in the car.
If you keep it for another, say, 3 years & stack on 20K per year, your car would still have done only 102K miles - it will still be 42K miles below the "average" mileage for cars of that age (assuming 12 years old at that point).
As Henry says - "buy on condition, not mileage". Assuming you keep the service history up & keep the car in top condition you will see little, if any, incremental depreciation if you use it, enjoy it & service it.
My advice is drive it ...
The car has a very low mileage for its age, but that won't be reflected in the price you can get it for. Mine, from a non-porsche main dealer didn't cost much more that yours 2 months ago and its a 2000 model with 46K on the clock, so I'd be surprised if you will get much more than 23-24K for it to be honest.
If you look at the price for a very high mileage 97 or 98 model with 100K plus miles in a grotty colour you're still looking at 19K to 20K, so as you've already had the biggest hit on depreciation, a few more miles aren't going to have a huge effect.
Just my 2p worth.
The car has a very low mileage for its age, but that won't be reflected in the price you can get it for. Mine, from a non-porsche main dealer didn't cost much more that yours 2 months ago and its a 2000 model with 46K on the clock, so I'd be surprised if you will get much more than 23-24K for it to be honest.
If you look at the price for a very high mileage 97 or 98 model with 100K plus miles in a grotty colour you're still looking at 19K to 20K, so as you've already had the biggest hit on depreciation, a few more miles aren't going to have a huge effect.
Just my 2p worth.
diesel130 said:
My advice is drive it ...
The car has a very low mileage for its age, but that won't be reflected in the price you can get it for. Mine, from a non-porsche main dealer didn't cost much more that yours 2 months ago and its a 2000 model with 46K on the clock, so I'd be surprised if you will get much more than 23-24K for it to be honest.
If you look at the price for a very high mileage 97 or 98 model with 100K plus miles in a grotty colour you're still looking at 19K to 20K, so as you've already had the biggest hit on depreciation, a few more miles aren't going to have a huge effect.
Just my 2p worth.
The car has a very low mileage for its age, but that won't be reflected in the price you can get it for. Mine, from a non-porsche main dealer didn't cost much more that yours 2 months ago and its a 2000 model with 46K on the clock, so I'd be surprised if you will get much more than 23-24K for it to be honest.
If you look at the price for a very high mileage 97 or 98 model with 100K plus miles in a grotty colour you're still looking at 19K to 20K, so as you've already had the biggest hit on depreciation, a few more miles aren't going to have a huge effect.
Just my 2p worth.
Agree with this - prices are plummeting! I just sold my 99C4 for £23k after about 5 weeks of ads on PH. Nice 4k drop in 10 months! Beats working for a living. Glad I didn't fork out for the warranty too!
worth every penny though - great car! Just drive it and enjoy it mate if you can afford it!
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