Do you think about depreciation and target forecast cost?

[p1tse]

It happens to all car owners, more so for others depending on cars

It's amazing the threads I read how much depreciation people experience in a short period of time

I was reading someone with a BMW 320d having lost near £10k in two years as for part ex and then spend another £10k to get a newer used model, but still underpinning similar 20d engine

Do you guys forecast expected loss/ cost per month in depreciation?
Obviously sheds and cheaper cars to begin with will have little to depreciate but for many who look used say a several year old with average mileage, those who buy nearly new or new etc.

In the example above about £500/ month cost in depreciation is a fair whack especially for those who are paying finance on top etc.

[Riley Blue]

It doesn't concern me as I now buy when cars are at the bottom of their depreciation curve. If you're not fussed about driving a recent model it makes much more sense.

[Jasandjules]

No, I buy the car I want and use it. The last Passat I bought we kept for 10 years. My TVR I have no idea what her current value is and it doesn't matter because she won't be sold.

[Troubleatmill]

You are a long time dead.

Go in with eyes open and enjoy.

[SEE YA]

No I never bought my dream car, thinking will it lose value or go up.

The bonus has been, it has shot up in the last few years.

[SV8Predator]

swerni said:

Depreciation , like appreciation, isn't real until you despise of the asset.

Yes, if you despise it you won't appreciate it.

[Zyp]

I never thought about it until I realised my Alpina has lost £24k in <3 years.

But, that's just the way it is.
If you think too hard about it you'll end up with a pony and trap.

[Stick Legs]

Only in as much as the final balloon will be paid as a lump in 3 years on my F10 530d.
I could have done straight repayment but prefered the flexibility of the lower monthly & a £8k balloon to pay which I can do comfortably. If circumstances change; hand car back.

EDIT:

I should add I plan on keeping the car for about 10 years or until it becomes unfeasibly unreliable. At which point it will be worth about £1k.

So no, not really. £20k to buy, £10k budgeted to service. £30k / 120 months is what it costs to have a 5 series.

Edited by Stick Legs on Saturday 5th July 20:55

[Justin Case]

Let the mugs who buy the new cars and sell them after three years suffer the depreciation. Most cars will lose half of their original cost in that time but will still have more than half of their useful life in front of them.

[nct001]

Stick Legs said:

Only in as much as the final balloon will be paid as a lump in 3 years on my F10 530d.
I could have done straight repayment but prefered the flexibility of the lower monthly & a £8k balloon to pay which I can do comfortably. If circumstances change; hand car back.

EDIT:

I should add I plan on keeping the car for about 10 years or until it becomes unfeasibly unreliable. At which point it will be worth about £1k.

So no, not really. £20k to buy, £10k budgeted to service. £30k / 120 months is what it costs to have a 5 series.

Edited by Stick Legs on Saturday 5th July 20:55

Probably closer to £20k for 10 years servicing and maintenance if using specialist / main dealer

[M4cruiser]

p1tse said:

Do you guys forecast expected loss/ cost per month in depreciation?
.

Yes, after some early bad buys, I soon came to realise how much the hidden cost is.

I'd feel guilty driving something that cost £12 a day when that money could be spent on my children.

.... provided I still have something just good enough to get me to work and back to earn the money in the first place .. I do, and a few years into the ownership the depreciation now is about £12 per month, not per day.

So, yes, I've spent several happy years now driving cars worth almost nothing, relative to my neighbours and work colleagues.

[Stick Legs]

nct001 said:

Stick Legs said:

Only in as much as the final balloon will be paid as a lump in 3 years on my F10 530d.
I could have done straight repayment but prefered the flexibility of the lower monthly & a £8k balloon to pay which I can do comfortably. If circumstances change; hand car back.

EDIT:

I should add I plan on keeping the car for about 10 years or until it becomes unfeasibly unreliable. At which point it will be worth about £1k.

So no, not really. £20k to buy, £10k budgeted to service. £30k / 120 months is what it costs to have a 5 series.

Edited by Stick Legs on Saturday 5th July 20:55

Probably closer to £20k for 10 years servicing and maintenance if using specialist / main dealer

Man maths, add the cost to any other car. This is not the cost of a 530 vs a pair of shoes!

[whoami]

No.

[SV8Predator]

Justin Case said:

Let the mugs who buy the new cars and sell them after three years suffer the depreciation. Most cars will lose half of their original cost in that time but will still have more than half of their useful life in front of them.

But these "mugs" can afford the depreciation. What about the mugs that buy three-year-old cars and find them depreciating at £250-450 a month for the next few years. Real mugs!

[Stick Legs]

SV8Predator said:

Justin Case said:

Let the mugs who buy the new cars and sell them after three years suffer the depreciation. Most cars will lose half of their original cost in that time but will still have more than half of their useful life in front of them.

But these "mugs" can afford the depreciation. What about the mugs that buy three-year-old cars and find them depreciating at £250-450 a month for the next few years. Real mugs!

Exactly, the point of new / 3 year old car ownership is the choice was never about £50k 5 series vs £20k 5 series vs £3k 5 series which will be the cheapest.
It was about what can I afford, what do I want.
Plenty of other decisions you make are not financially sound. I know cars are a big purchase item but most of us here have a phone contract which is £50 a month down the drain for convenience.
A lap top which is a one of cost of £400-£2000 with a realistic life expectancy of 5 years before software makes it a dinosaur.
My car is like my iPhone, cost benefit analysed and the answer was yes.
Of course a Nokia 3310 for £20 off ebay & a sim only contract is cheaper.

[LeoSayer]

Yes, it forms part of the research I perform when looking to buy a car. It sounds a bit scientific, but it means I go in with my eyes open.

And it works both ways. A high priced but low depreciating car can become affordable.... Is. Man maths

[johnny fotze]

I expect a years motoring for every £1k I spend, any longer is a bonus. In recent times the best has been a £1.5k jeep which gave me 4 years trouble free then traded in for £500. The worst was a 1.5k e46 which dropped dead in under a month.
I don't suppose it's any different from spending 10k and making it last 10 years, I just can't imagine driving the same car for that long.

[mp3manager]

"Target forecast cost" WTH is that??

Didn't know management-speak had invaded owning a car.

[gf15]

yes.
Always,
Last car, BMW 740 cost £8k @70k miles, planned to keep it for 3 years, end value estimated at £1k, in the end kept it for 6 years, so depreciation was ~£1250 per year.

Latest car cost £15k @ 48k miles and 5 years old. I do 25k miles PA. Plan is to keep it for 6 years, so planned depreciation is ~£200 per month. Value at end of 6 years will be bugger all.
3 years in, On target.
I think that is OK for nice cars. The elephant in the corner is the fuel costs.

[Troubleatmill]

gf15 said:

yes.
Always,
Last car, BMW 740 cost £8k @70k miles, planned to keep it for 3 years, end value estimated at £1k, in the end kept it for 6 years, so depreciation was ~£1250 per year.

Latest car cost £15k @ 48k miles and 5 years old. I do 25k miles PA. Plan is to keep it for 6 years, so planned depreciation is ~£200 per month. Value at end of 6 years will be bugger all.
3 years in, On target.
I think that is OK for nice cars. The elephant in the corner is the fuel costs.

Corvette C6 Z06.
Purchase price - and sales price difference - £4K over two years.
Petrol. Wallet weeping.
Tyres. 3 Full sets of tyres a year at about £8K per annum.
I recommend you do not use this car as a daily drive if you are watching the pennies