Over The Hill
Guru
- Location
- Ridden off into the sunset
I always get confused at that sort of thinking. I know it is how a lot of people veiw the world. But when I buy a depreciating asset (a car in this example) I always feel I am turning money into a completly valuless lump of metal that will suck maintainance and tax out of me untill it dies. I never expect to get any money back from it. Once it dies I buy a new(er) one and it always suprises me that there is any residual value to it at all. Bonus!
I do the same but a friend of mine would say he also does. But he has quite different results.....
I run a car that cost me £1,000 and I have so far had nearly four trouble free years and 36,000 miles from it. It is a Diesel and gets a good 55mpg. It probably is worth what I paid for it still or near enough.
Friend of mine thinks £1000 is rather a lot to pay so buys really old petrol Volvos at about £300 a go. He has had to buy two or three in the same time and spends a good £500 each time an mot comes up and gets 20mpg if he is lucky.
He does about the same number of miles.
Now in that time I have spent about £3,900 on fuel and £500 tops on mot and repairs so £4,400 in 4 years.
Friend has spent £10,800 on fuel and £2000 on repairs plus a good £500 in scrapped cars. so £13,300 in 4 years for driving a real heap of unreliable rubbish.
Now he could buy a fairly new economical car and run it for less than he is spending. Oddly he is an economist.
Overall it is perhaps a matter of a good car choice being the main thing with it more to do with the life left in it and mpg rather than actual price.