Calculating car costs

[thinfourth2]

Considering for the first time ever a new car

Now this will involve some sort of finance

Now how do you figure in deperciation?

Lets say its a car that costs an amount

The monthly payment is £300 and that is £100 interest and £200 capital repayment

The depreciation is also £300 a month


However i don't see the depreciation until the car is sold

So what is the car costing me amonth?

Figures plucked from thin air to give me an idea what is happening so yes they are probably wildly out

[Vee]

Depends on what you think the car will be worth when you sell it ?

[homerjay]

thinfourth2 said:

Considering for the first time ever a new car

Now this will involve some sort of finance

Now how do you figure in deperciation?

Lets say its a car that costs an amount

The monthly payment is £300 and that is £100 interest and £200 capital repayment

The depreciation is also £300 a month


However i don't see the depreciation until the car is sold

So what is the car costing me amonth?

Figures plucked from thin air to give me an idea what is happening so yes they are probably wildly out

it doesnt quiet work like that, check out 'amortization'
http://www.calculator.net/amortization-calculator....

then find the value of the car in x years from vauxhall glasses guide
http://www.virtual-showroom.co.uk/scripts/nuvv/nuv...

[thinfourth2]

homerjay said:

thinfourth2 said:

Considering for the first time ever a new car

Now this will involve some sort of finance

Now how do you figure in deperciation?

Lets say its a car that costs an amount

The monthly payment is £300 and that is £100 interest and £200 capital repayment

The depreciation is also £300 a month


However i don't see the depreciation until the car is sold

So what is the car costing me amonth?

Figures plucked from thin air to give me an idea what is happening so yes they are probably wildly out

it doesnt quiet work like that, check out 'amortization'
http://www.calculator.net/amortization-calculator....

then find the value of the car in x years from vauxhall glasses guide
http://www.virtual-showroom.co.uk/scripts/nuvv/nuv...

Yes i know that it varies

But for the figure i have what does it work out at

[tomtom]

20 quid.

[Ean218]

You need more figures than the ones you have given so far, but assuming a number of things it goes like this.

If your finance is £300 per month and fully pays for the vehicle at the end of the deal and there was no deposit then the £300 per month depreciation means the car is worthless at the end, so the total cost is the sum of your monthly repayments.

[thinfourth2]

Okay more realistic figures but rounded off to make sums easier

deposit £800 (probably my old slowcus)
On road price £8200

Monthly payment £150 x 36 months
Final payment £3000

Now depreciation = about £160 a month over 36 months assuming car is worth £2500 at the end after i have abused the crap out of it

So what is it costing me a month ignoring fuel,tax,insurance,servicing. its just how depreciation and monthly costs relate to each other then is slightly confusing me

[cheadle hulme]

thinfourth2 said:

Okay more realistic figures but rounded off to make sums easier

deposit £800 (probably my old slowcus)
On road price £8200

Monthly payment £150 x 36 months
Final payment £3000

Now depreciation = about £160 a month over 36 months assuming car is worth £2500 at the end after i have abused the crap out of it

So what is it costing me a month ignoring fuel,tax,insurance,servicing. its just how depreciation and monthly costs relate to each other then is slightly confusing me

Its costing you the amount of money that leaves your pocket.

In this case £800 + £5400 + £3000 less £2500 you get back for it equals £6700

Or £186 per month.

[thinfourth2]

Thanks that makes me sums simplier

I'll get that A grade at GCSE maths yet