[luckyjimmy]

I've just seen the article (below) which attempts to settle the debate over whether it is cheaper to buy a new car or go for an older used model. They have used the Up as the new car example and have given figures for depreciation etc. Interesting reading...


http://tinyurl.com/chmmknl

 

[tom]

before we all start arguing again, can we all agree that its really subjective to what one wants out of a car, how many miles you are doing and how much you want to spend

 

[kg149]

Interesting reading, but the calculations for total cost per year are wrong

They are missing the fact that at the end of the 3 years you are left with an asset

They have calculated the depreciation as 1100 per year for the VW up, so left it with an asset value of (8000-3300)=£4700 or £1566 per year
So using their calculations I believe the True cost per year of ownership is (5752-1566)=£4186

Similarly they have made the same mistake with the focus (7000-4200)=£2800 or £933 per year
So True cost of ownership is (6408-933)=£5475

This makes a £1289 difference per year and puts into context why the new Up! is an excellent choice and worth me giving up size of car for economy.

Also worth noting that this articledoesn'trecognise that the UP has a full 3 year warranty, where as the focus has no warranty and mechanical parts will wear during the 3 years (eg brake pads maybe)
I realise there is an allowance for replacement tyres/parts, but is this enough? What replacement parts will the Up require in 24,000 miles?




Edited by: kg149