Real Costs of Car Use.

Discussion in 'General chat' started by Peter, Sep 12, 2019.

  1. Peter
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    Peter WARLORD Site Supporter

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    I'm preparing an "7-year review" for my ownership of the 535i. Crunching the numbers for running costs, thought it worth a separate topic.

    I know not many of us keep a spreadsheet of the true running cost, but it can be quite eye watering to know the total costs. As some know, I bought my car at 14 months old, <6k miles, for 40% under list price. The real costs (total costs, I mean everything down to top up oil, less trade-in value) for driving ~51,500 miles, over 7-years of ownership, has been almost £50,500 or 98 pence per mile. (I do have the figures for ppm as the car ages).

    What I'm mulling over, is it really worth running a car to this sort of age, (from a nearly new start), what savings are there for keeping the car, particularly keeping it in good condition, similar to AUC standard.

    What's the view? Both for knowing the true costs, and running into older years.

    Peter
     
  2. The_Master
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    The_Master

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    Depreciation especially in the first three years will always make up a large percentage of costs - many cars will lose 50-60% of their value in the first three years, many options will lose all of their value (i.e. they won't make the second hand car worth much or any more), you avoided much of that by buying at 14 months old and got a big discount but there was probably another 20% of original list price to shift in the next 18 months - assumming the list price was circa £50K that's still another £10K and then an adiitional £3K or so a year after that.

    Spuffington has puchased a brand of vehicle that is better than most for depreciation but in his running costs update nearly 60% of his costs come form depreciation for his Macan and this will be accurate.

    Normally keeping the car longer will help even out this cost however it is still money lost...

    Changing cars more frequently will also cost more as normally (assuming you trade in) you buy at retail and sell at trade so there will be a few thousand loss each time.
     
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  3. bishbosh
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    bishbosh WARLORD Site Supporter

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    I worked out that my E91 cost me approx 35 pence per mile, but it was a bog standard SE at 3.5 years old and had lost a lot of the depreciation by the time I bought it.

    God knows what the F30 is costing me, but I could probably work it out.
     
  4. idrussell
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    idrussell Site Supporter

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    It is frightening when you work out the true cost of ownership. I have always bought my cars outright and it is nice to feel like you own it but increasingly I am wondering if it is worth it or whether I would be better just renting it for 3 or 4 years like apparently 97% of people now do on PCP deals or the like and handing it back every 3 years for a new model. Yes it is never yours but at the end of the day does that really matter it is pretty much worthless after 5 or 6 years compared to the purchase price..
    My local dealer are trying to push me into an 840d for monthly payments that look mighty tempting compared to shelling out up front for say another 3 year old 6 series..
     
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  5. Spuffington
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    Spuffington Moderator WARLORD Site Supporter

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    It’s no secret (and has been mentioned above) that I do the same as you, Peter.

    I don’t do it for any other reason than a bit of fun and to help those for whom it is important to know costs before going into a car purchase. It does also help me a little being able to relativise a purchase.

    In terms of where is best in a cars lifecycle to run it (from a cost perspective), I think there are so many variables it’s difficult to have one blanket rule.

    Some good points above - buying lightly used for a hefty discount is a sure fire way of avoiding a goo bit of the extreme depreciation of buying new. However PCPing gives you a very well known depreciation cost and buying new gives you the certainty of warranty. High mileage although offset by potential increased maintenance costs, also provides an amortising element to cost on a ppm basis, if that is your measurable.

    Problem is, for those who like unique, well spec’d, big engine, petrol motors, even buying new on PCP is expensive for exactly the reasons given above - options have to be amortised quickly as they have no value on the used market and given the way residuals work on fleet management, a car which doesn’t fit the “norm” will be treated harsher on an RV basis than a basic spec 320d M sport, for example.

    If you have a graph showing your ppm at various points in your ownership tenure, then I think you’ll
    Largely be able to answer your own question, Peter. But it certainly is a good question. The answer I fear will be different for everyone depending on what it is they are trying to achieve from their vehicle.

    For me, I want a car which makes me feel good as well as do all the practical bits I need it to. Once we’re into the realms of emotional buying, running costs are largely irrelevant and entirely driven by disposable income.
     
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  6. E39mad
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    E39mad

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    Interesting topic. I have just looked through my accounts to work out the running costs since my ownership in Dec 2013 when the car was 3 years old. It still had 2 years remaining of a five year service plan. We do not run a warranty and the total cost of ownership in the 51000 miles since Dec 13 including depreciation, fuel, tax, insurance, MOT, tyres, servicing and repairs is just over £23000 or 43.50ppm. Quite happy with that.
     
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  7. Peter
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    Peter WARLORD Site Supporter

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    35ppm is cheap motoring, (y) F30 won't be as cheap.

    Peter
     
  8. Peter
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    Peter WARLORD Site Supporter

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    Clearly the depreciation levelling out helps running an older car, makes it a cheaper alternative than a newer replacement. Whether the saving in ppm is enough to justify running the older car, where reliability, unexpected failures, wear and tear, are the biggest ongoing issues. I still rate running under the extended warranty as essential, to reduce the risk, but that doesn't help the ppm to come down older car levels. (Saying that, without it I would have had higher repair bills, so a bit of swings and roundabouts). I'm still about 84ppm for the last year of motoring, in an 7 - 8 year old car. :(

    I suppose it is the reality of running an older 5-series, never going to become 'cheap' motoring.

    Peter
     
  9. rigeng
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    rigeng Site Supporter

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    I don't know the true cost of running my car (2011, F10, 530i) but in the 6.5 years I've owned it the only unscheduled maintenance required has been a rear spring. So I can't complain about the car's reliability, but as it has reached 50k miles only recently it should not be getting into 'banger' territory yet! It's the same with my wife's car (2011, E92, 325i) which she's owned for 5.5 years, the only unscheduled maintenance being a new battery, although again, as it is only on 34k miles I would expect it to be in good, reliable condition. So my experience of running our cars into older years is a positive one, but it's going to be a wallet busting expense when a decision is made to change one of our cars!
     
  10. Peter
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    Peter WARLORD Site Supporter

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    Personally I don't find BMW (based on experience) that reliable, hence why I run with the extended warranty. The last 2-years (since 6-years old) has cost me over £1,200 in unscheduled/premature repairs. Add the 2-years warranty cost for the period, that is over £3,000 for the unexpected. Without the warranty it would be even more. Add the expected servicing, (since the service pack ran out), total is over £3,500 for the last two years. That's quite a big contribution to a newer car.

    Peter
     
  11. isleaiw
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    isleaiw

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    Just to go to the other extreme, I bought my Audi brand new, and as a newish model with relatively little discount. I then sold it two years later (all bar a week).

    The depreciation was 83ppm....

    Servicing and tyres about 5ppm.... petrol would have been about 5ppm too....

    I suspect my new one will be considerably worse on all fronts. Good job I don’t have many other interests!
     
  12. Peter
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    Peter WARLORD Site Supporter

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    Now that is some serious man maths.... :D over 115mpg. Sure you mean 25ppm for petrol. (23 - 25mpg).

    BTW, the depreciation appears on the low side, assume you got a very good trade-in against the M5.

    Peter
     
  13. isleaiw
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    isleaiw

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    Oops, wrong calculation - 20ppm - 30mpg over life as most of use was long journeys....

    Sold the Audi in the trade via a nice intermediary who got me £2k more than part ex offer...

    All the focus when buying the M5 was maximising the discount on purchase price, I was happy to sell the Audi privately if needed...

    And keep saying it looks low, it was still over £9k a year! I did 22400 miles in the time I owned it...
     
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  14. bmwmike
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    bmwmike

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    Hello. I've got a f10 530i too - not many around. I think they registered very few indeed. I've had mine coming up to five years. Keep thinking I'll sell it but it's been great and does everything I need.
     
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  15. zarnd
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    zarnd

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    I just don’t think about it. I can’t


    Sent from my iPhone using Tapatalk
     
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