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Depreciation


cabby
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Browsing the website of a local car dealer I couldn't help but work out the deprecation on a 2010 730d M Sport. From what I can work out this was £62k new, say £65k with a few basic options though could easily have been £70k+. 2 years later it can be had for £27k - that works out at £1,400/month :eek:.

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Funnily enough I asked my wife did she like the 7 series that was parking in front of us and she said it looked nice but must be very expensive. When I said it cost little more than my car for one 2 years old her jaw dropped, might have a look at one, I quite like getting a lot for my money.

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A former business partner of mine picked up a old-shape 740i (the one before the Bangle version) when it was 3 years old for £28k or so and ran it for a good few years.

After he left, we tried to get rid of it. It must have been 5 years old by then... we couldn't give it away! No-one who wants a plush executive barge also wants a 5-year-old car.

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A former business partner of mine picked up a old-shape 740i (the one before the Bangle version) when it was 3 years old for £28k or so and ran it for a good few years.

After he left, we tried to get rid of it. It must have been 5 years old by then... we couldn't give it away! No-one who wants a plush executive barge also wants a 5-year-old car.

That is my ideal age for a plush exec. Maintained regardless, hardly worn in, as they don't tend to get thrashed.

At the end of 2004, I bought a 170K mile A8 4.2 Sport. It was a P reg then. Little over £5K. Bargain - one company owner.

Lovely car. [long sigh]

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As a few people have said on here before, cheap to buy but it's still a £70k car when it comes to running it and fixing it

Admittedly so. I am also of the mindset that thinks that a £70K is better designed and built than a £20K car. More effort and care goes into it. Afterall, it's likely to be the flagship car. They don't want them sitting on the hard shoulder for all to see!

My A8 was faultless.

However, saying that 100% of my cars have never let me down! Never been towed or sat on an RAC trailer. Maybe because most have been exec style cars!

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Admittedly so. I am also of the mindset that thinks that a £70K is better designed and built than a £20K car. More effort and care goes into it. Afterall, it's likely to be the flagship car. They don't want them sitting on the hard shoulder for all to see!

My A8 was faultless.

However, saying that 100% of my cars have never let me down! Never been towed or sat on an RAC trailer. Maybe because most have been exec style cars!

I can see that point of view too.

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When i had my Range Rover (the most expensive car i have had), it was the 'consumables' that added up quickly.

How much is a set of brake disks and pads all round on a 730 these days? its knocking on the door of £800 for the RR. Heavy cars do get through them.

Oh and by the way, whilst i agree with your point about £70k cars v's £20k cars, the RR (Vogue) was THE worst car I have had for reliability and expensive gremlins - and I had one of the first generation VW Touaregs !! :D

Edited by DanG
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The point about the cost of maintenance is why the best deals are cars still in warranty (just, i.e. around the 3 year old mark) that haven't already fallen into the hands of people who don't understand that point.

If you are quite handy at doing the odd thing (like brakes etc) then that will help a lot, along with knowing a decent independent garage.

Yes, some things will still be prohibitively expensive and/or need special tools (especially now!) but and it's a big but, find a good one - like a 1 or 2 owner high miler and you are sorted.

Many owners - avoid!! As do cars with dodgy reputations (early RR included).

Have yet to be bitten on my big fat arse! (touch wood)......... probably not the best thing to say after talking about arses. :grin:

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It isn't always as straightforward as it might seem as Chri5 says:

Purchased my car as a company car in September 2008 for £40k. It is sold to a client (once I find a car) for £23,000.

Thanks to depreciation allowed by HMRC it stands us in the accounts at £12,900. Therefore the sale realises my business a profit on the sale of £10,100. However, I have sold it to a client who wants some finance on it. There will be £3k interest charges on the deal so there is also an additional profit there as well.

New car will list with options at £74k. I am looking to pay around £55k for a car with no more than 1k miles on the clock.

Initial depreciation is massive but the business will stand that and no doubt I will sell on the new car in three or four years to a client with a finance deal to sweeten the deal for them and me.

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Ha ha! The finance is a bonus. I was highlighting the write down issue really.

Pay is crap. I wouldn't recommend anyone gets into this game :)

But the car and fuel card sure helps! Have you thought to offer the car to yourself for the value on the firms books, you 'buy' it for £12,900 and sell it to the guy for the £23k and sit on a nice tax free bonus of £10k +++

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When i had my Range Rover (the most expensive car i have had), it was the 'consumables' that added up quickly.

How much is a set of brake disks and pads all round on a 730 these days? its knocking on the door of £800 for the RR. Heavy cars do get through them.

A lot more than that. About £1,300 all in at a main dealer.

Overall though, the 730d isn't too expensive to maintain and as I've said in another thread recently they're strong performers and very economical.

Plus, Evolve will send you a remap for £499 that ups power to 290 bhp and, and here's the key, 700Nm of torque.

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Have you thought to offer the car to yourself for the value on the firms books, you 'buy' it for £12,900 and sell it to the guy for the £23k and sit on a nice tax free bonus of £10k

Ha! It would be possible if it was a straight sale. Add in the finance and the paper trail is too much of a risk!

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I think Chri5 was offering to be middle man on the deal........... :grin:

No, but if you insist..

Booster what has the paper trail got to do with a perfectly legal sale?

You buy the car, you sell the car. Just because you end up introducing the buyer to the finance facilities your firm can offer, I dont see that HM can say anything!

Fact: The car is worth £12,900 to the firm

Fact: If your firm sells it for anything over £12,900 they'd (you) would be happy and HMRC can't (and wouldn't) care

Fact: Your firm can arrange finance (as must be the majority of deals) for cars not owned by the firm

Maybe buy it for £15k so well over the accounts book price, for £8k you would get one hell of a Xmas party.

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