Subject:
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Re: Busy Bee goodies
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Newsgroups:
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lugnet.loc.uk
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Date:
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Mon, 15 May 2000 08:00:49 GMT
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Viewed:
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649 times
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In lugnet.loc.uk, Jason Briscoe writes:
> > Someone told me that a new car cost £1 a mile to run.
> This can't be right?
>
> I have done nearly 20,000 miles since May 99 and there is no way that its
> cost me £20,000. The car was only 19,500 last may when I bought it, Its had
> two services one at 10 and 20K (both included in purchase price). Current
> value is approx 14K, diesel costs at approx 40mpg = 20,000/40 = 500 gallons
> which is approx £2400, insurance 2yrs at £500 equates to a grand total of
> £8400 which is around 43p per mile!
You are forgetting the biggest cost, depreciation!
I dont know what model it is, but that one year old car might only be worth
60% of its original value.
So 40% of 19500 is £7800, divide by 20,000 = 39p per mile.
And if you had to borrow to finance it add the interest too. And add the lost
opportunity cost of investing that 19500 instead.
And the higher the mileage the more depreciation.
So I reckon that adding the cost of funding the car to your £8400 consumables
costs and your getting close to the £20,000. Frightening isnt it!
Of course many people look at the cost of buying the car as just sunk cost,
they dont consider it in the running costs. However, there are many people who
I bet if they did their sums would be shocked what the true cost of owing a
car is and may even find if they do a low mileage that taxis and hire cars
would work out cheaper, without sacrificing the number of journeys.
Invest your money in antique lego instead and watch it appreciate!
regards
lawrence
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Message has 1 Reply:
 | | Re: Busy Bee goodies
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| (...) Ignore my last post. I must have eye problem this morning. You did include depreciation. Look in the back of What Car and it shows the running cost per mile assuming 3 years ownership with 10,000 miles per car. The More expensive the car then (...) (25 years ago, 15-May-00, to lugnet.loc.uk)
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Message is in Reply To:
| | Re: Busy Bee goodies
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| In response to: (...) This can't be right? I have done nearly 20,000 miles since May 99 and there is no way that its cost me £20,000. The car was only 19,500 last may when I bought it, Its had two services one at 10 and 20K (both included in (...) (25 years ago, 14-May-00, to lugnet.loc.uk)
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