Four Horsemen - Documentary - Official Version
This free online service Car amortization calculator will calculate the annual, total depreciation and lifetime costs of purchasing a vehicle.
You might be shocked to see how these amortization costs add up in your life - not too mention the amount of your future potential wealth will be confiscated in the process.
If you want to estimate all costs associated with buying and owning a vehicle depreciation over taxes, permits, financial expenses, gasoline, insurance, maintenance, repairs, etc., make sure visit the car buying calculator on the website full of this writing.
With that I invite you to use the car depreciation calculator to forecast your depreciation costs of vehicles and their interest income foregone associated.
Enter the current age of the car if the car is new, enter 0.
Enter the number of years you plan to own the car.
Enter the number of years for calculating depreciation lifetime costs.
Enter the annual percent yield you expect to earn on your investments.
Adjust the year depreciation rate in year t if you agree with the default rate.
The car amortization calculator multiplies the percentage of depreciation each year by the vehicle purchase price is entered, as opposed to the percentage increase in the resale value of the previous year.
Clicking the Reset button will restore the calculator to its default settings.
When buying a car, you are in fact trade cash assets to another automobile asset at the time of the operation, it's assumed that the value of the traded money is equal to the value of auto money was exchanged for in other words, no expense should actually occur at the time of trade, if only that were true in all cases.
A charge occurs when the automotive value falls below the value of the money that was negotiated for her This decrease in value is called depreciation.
However, since there are many unknown variables that come into play when estimating the cost of depreciation, the only time you'll be able to determine the exact size of the expense is when you sell Indeed, trade or scrap your vehicle only then you are sure how much your car has dropped in value since you bought.
As for what the variables are unknown, they include variables such as the economy, gas prices, the number of miles you drive your car, the condition of the car, and demand for the brand and the model of the car.
Given all these unknowns, the goal of the car depreciation calculator is not to calculate the exact amount by which a car will drop in value.
Instead, the purpose of the calculator is to provide a means of comparing the depreciation costs for various scenarios purchasing car and show you how these costs and lost future wealth potential, can add during your life.
Earlier I said that when you trade money for a car, it's assumed that the automotive value equals the value of the money that was negotiated for her In fact, there is that one buying scenario where this assumption is somewhat correct - a scenario where you buy the car of an individual.
If you buy a used car from a car dealer, the value of the car instantly fall in value the moment you drive the car off the lot.
This is because the car dealership marked the value of the car used to include a profit margin.
If you want to know how this decline, drive your car just immediately bought a competitor dealership and ask how much money they d be willing to give you for the car.
But wait, this decline in value is nothing compared to the fall in value you will experience if you buy a new car.
When buying a new car, the new car instantly becomes a used car.
So not only the drop in the value of the new car by the amount of the profit margin of the dealer, but also in free fall by the decline in perceived value used is much less attractive as the new All together, this depreciation chain speed happens the moment you drive a new car off the lot can operate in the range 10-30 Ouch.
Now, if you add to this the fact that cars depreciate quickly in their early years and slower years later, buying a new car every 1-3 years will cost you a fortune in hyper, the 'warp speed damping and loss analysis gains interest these types of scenarios in the car depreciation calculator and you will see what i mean.
I personally know people with average incomes who buy new vehicles 30,000- 50,000 every 1-2 years, I could literally retire at what they throw away in depreciation and sacrificed interests.
Most financial experts will tell you that the key to getting the most value from your exchange of money for a car, is to buy a car that has a low rate low damping k has a high resale value.
What is wrong with this advice well as cars that have the lowest depreciation rates tend to have the highest sticker price, the amortization cost that you save can be largely offset by the increase in car prices and higher insurance premiums.
If you really want to reduce the depreciation cost of owning a vehicle, the key is to either buy a new car and hold for a long period of time say 8-10 years, or buy quite often little used car to avoid costly repairs in progress that can come with heavily used vehicles.
Of course, if you can walk or cycle to work, and where you have access to public transport, you can eliminate the car depreciation costs together.
Car Depreciation Calculator eyeopening Opportunity based on costs, amortization, calculator, cost, of course your life.