Cold Fussion wrote:A normal car is a money sink not an investment. If you buy a car from new, what grounds do you have to be annoyed that the value of your car has dropped as a result of this? At the time you buy it, you cannot be sure of it's value when you decide to sell it.
When
I buy a car, I view the car in its entirety as an investment. Not just initial cost of car, but also the cost of taxes, insurance, cost of maintenance, cost of fuel and also how well it holds its value. A typical leasing period is 4 years here - so comparing the respective worth of a car after 4 years across your typical usage/mileage is an easy way to compare cars. Certain brands/cars hold its value better on the 2nd hand market.
So a typical off-the-head calculation may look something like this, assuming a usage of 25k km per year:
+ car price 0km (minus whatever deal you get off the car)
+ aprox maintenance cost per year (typical service etc) * 4
+ aprox insurance cost per year * 4
+ fuel usage (cost) per km * 100'000km
- aprox car worth after 4 years with 100'000km
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diff = total aprox. cost of investment
Of course, I wouldn't compare a Citroen to a Porsche or something, more a like for like between multiple daily commute drives. Speaking of Citroen btw, at least overhere; they don't hold their value well. German cars typically however do; and it'd be one of the reason why I'd be pissed if the 2nd hand worth of your car just significantly decreased due to such a fiasco.
PS: As for your question "
At the time you buy it, you cannot be sure of it's value when you decide to sell it" --- if I'm considering a brandnew BMW 335i model year 2015 and want to know how it will be worth in 2019 at a particular km, I'll look at the 2011 model that is on sale now. Typically, despite lots of things changing from model to model year, a certain model will stay within its designated market and thus be reasonably consistent where its price is concerned. All approximation of course, but better than assuming your car will be worth zero $$$ in any case.