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Thread: Car depreciation

  1. #1
    Senior Member Lighttouch's Avatar
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    Car depreciation

    Have you ever thought how much value your vehicle can lose through depreciation.

    A brand new car being driven off a garages forecourt will loose 25% in one day! EG a car costing £20,000 will only be worth £15,000 a day or year later.

    The most value is lost in the first 3 years. So the value of a 3 year old car that cost you £20,000 will be about £8,000.

    As cars are built so reliably these days it's not uncommon to see reliable cars been used 10 years after they were made.

    My vehicle has a 57 plate on it and 'webuyanycar' valued it at just under £2,000 but it does everything I want it to do!

    The depreciation on my car will be £500 - in the great scheme of things that's nothing for independent travel.

    Providing that your car is well maintained there shouldn't be too many shock bills and you could save yourself a fortune - unless you want to keep up with the Jones's!!

  2. #2
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    As far as depreciation goes, the older the better. Better still get a classic that if maintained properly will actually gain value over time.

    My last car was 16 when it retired. I paid £340 for it, and scrapped it for £140 2 years later. so depreciation of £100 a year. Depreciation however was only part of the bigger picture. An mot cost be 100's, the tax was over £200 and it was averaging about 25mpg.

    With this car, ill probably lose about 1500 a year over 3 years. It'll do about 50-55mpg, road tax is £30 a year and mot shouldnt involve any major work. The one new expense is a service that i never did on the old banger. Overall with above average mileage, the two cars probably cost about the same.

  3. #3
    marcusnicholas
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    yep carl is right as your cars become old it will be more valuable if properly maintained.

  4. #4
    Senior Member AmyS's Avatar
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    Well I bought my car second hand - had it serviced today.- it's four years old and still hasn't done enough mileage for a 'first' service lol.

    Just had a quick nose online - in 8 months it's still 'almost' the same price I paid.

    Managed to rack up a whole 3,000 miles in that time lol, out of this was visits to see my mother in hospital 2,000 miles. My average mileage is about 80/100 miles per month, with one trip to Bristol and a few days out.

    I'll probably wait until my next PIP assessment and then sell it and may treat myself to a Motability car.

  5. #5
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    I know someone who has a motability car. It will have covered 7000 miles in 3 years which financially (including the AP and Fuel) works out at £1.50 a mile. My 28000 miles will have cost me 60p a mile. Best (financial)car I had was a Hillman Avenger, cost £345. Sold for £125 3 years later. Never serviced and apart from a starter motor which cost £5 from a breakers and self fitted, no problems.

  6. #6
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    I know someone who has a motability car. It will have covered 7000 miles in 3 years which financially (including the AP and Fuel) works out at ?1.50 a mile. My 28000 miles will have cost me 60p a mile. Best (financial)car I had was a Hillman Avenger, cost ?345. Sold for ?125 3 years later. Never serviced and apart from a starter motor which cost ?5 from a breakers and self fitted, no problems.

  7. #7
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    Quote Originally Posted by paul1234 View Post
    I know someone who has a motability car. It will have covered 7000 miles in 3 years which financially (including the AP and Fuel) works out at ?1.50 a mile. My 28000 miles will have cost me 60p a mile. Best (financial)car I had was a Hillman Avenger, cost ?345. Sold for ?125 3 years later. Never serviced and apart from a starter motor which cost ?5 from a breakers and self fitted, no problems.
    One thing I dont get here is why people with such low mileage actually take out a motability car and them a deposit and 235 a month for the privilage personally. my neighbour does less than 7k over 3 years and dont quote me but I reckon he could save a fortune by getting taxis instead! Just seems a waste of money I think.

    I only drive around 9k a year now and ive come off the scheme cos of the high deposits for people carriers which I need.

  8. #8
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    Quote Originally Posted by AmyS View Post
    Well I bought my car second hand - had it serviced today.- it's four years old and still hasn't done enough mileage for a 'first' service lol.

    Just had a quick nose online - in 8 months it's still 'almost' the same price I paid.

    Managed to rack up a whole 3,000 miles in that time lol, out of this was visits to see my mother in hospital 2,000 miles. My average mileage is about 80/100 miles per month, with one trip to Bristol and a few days out.

    I'll probably wait until my next PIP assessment and then sell it and may treat myself to a Motability car.
    Hi

    Personally with that low mileage I wouldnt bother after all it will cost you at least £8500 over 3 years excluding any advance payment you make for the car.

  9. #9
    Senior Member Lighttouch's Avatar
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    I;ve jusdt taken the log bookv back to my mum's garage as her car didn't pass its MOT and the car is only valued at £200 so it's not economical to repair. She'll get a refund for her insurance and tax. At last she's decided to hang up her driving gloves. She'll have to use a scooter, taxis or me for getting around.

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