Depreciation

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Thu 9 Jul 2009 23:12
Depreciation - edisdead {P}
Theoretical question, regarding changing rates of depreciation year on year...

Say I go out today and buy a car for a given price. Could I reasonably expect to have to pay exactly the same price in 12 months time for an identical model that is exactly 12 months younger (everything else being equal)? I'm not thinking about the nearly-new or bangernomics extremes of the spectrum, but something mid-way down the depreciation curve.

What factors are most likely to influence the rate of change of depreciation with time? I can only think of government legislation and the arrival new models/revisions pushing prices further down year on year, or elevation to 'classic' status tending to slow the fall in value...

Ed.
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Thu 9 Jul 2009 23:24
Depreciation - Dave_TD
In 2003 I bought a 1999 Mondeo 2.0 Ghia from a car supermarket in london for £3999.

The equivalent now would be an 05 plate model. Such as this:

tinyurl.com/kklqcu

So yes, you could reasonably expect the relative price to remain static IMO.

Hth,

Dave TD
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