Calculating Depreciation on a Used Car

[pj123]

For my work I am now driving a return trip of 200km a day 4 days a week.

I would like to estimate the cost of this, not just the diesel + tolls + servicing + tyres, but also depreciation

This will work out at about an extra 40,000 km per year on my 5 year old Pajero Sport, current odometer 198,000 km.

Any suggestions how to calculate this? Compared to the UK, Thais seem to place less reliance on the odometer when valuing a used car.

I don't want to include annual running costs such as insurance and tax as I would pay these anyway. 

 

[richard_smith237]

When I used my car for work here in Thailand I used the following (Google the link below), which at the time was about 20 baht per km. The company I was working for at the time seemed satisfied with this, but it did actually mean that driving was more expensive than flying !... 

 

Google: Rotary 2016-17 Mileage Reimbursement Rates Jan17

 

[pj123]

Thanks but link no longer working.

I could use a simple calculation

(Original price of car - current value/odometer)

Depreciation: 1,179,000 - 600,000 = 579,000

579,000/198,000km = 2.92 THB/km

 

[stevenl]

29 minutes ago, pj123 said:

Thanks but link no longer working.

I could use a simple calculation

(Original price of car - current value/odometer)

Depreciation: 1,179,000 - 600,000 = 579,000

579,000/198,000km = 2.92 THB/km

 

If you delete the 'cached' from the link it is working.

[JAS21]

If you have had it from new then you will know the cost of driving 40K Kms/year including routine servicing costs.

 

.You will know roughly how much it has depreciated over the years and it's value now.   The hard bit is future depreciation,but you could estimate at 15% per year from now value and you may not be that far off. I think your fuel costs will be more than the annual depreciation cost.

[richard_smith237]

Thanks but link no longer working.
I could use a simple calculation
(Original price of car - current value/odometer)
Depreciation: 1,179,000 - 600,000 = 579,000
579,000/198,000km = 2.92 THB/km
 

The link is to a PDF... Googke the words and you will see the document.

At 20 baht / km your yearly 40,000 km = 800,000 baht... It's a lot, but that's the internationally recognised rate according to Rotary, which is just one example of milage rates for an international busines...

It does seem rather high when you work it all out.

There may be other information to dig out from Thai companies to use as a comparison.


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[USPatriot]

Miles means nothing. You will find few cars with true miles on the odomiter on Thailand. My friend that owns two car dealers he doesn't trust the km reading. It is overall condition that he buys a car on.

 

 

[natway09]

Drive it out       25%   then 15% per year. 

Add your running costs       ,,,,, Bingo

[bazza73]

The normal rules of depreciation don't seem to apply in Thailand. It depends on whether the car is an import or locally manufactured, service record, plus mileage if it can be believed.

The car yards are full of clapped out vehicles with 200K -300K on the odometer. I wouldn't buy anything with more than 100K on the odometer. Even then, it's gamble.

[pj123]

That is one thing I have been considering. What is the difference in tent price for two 5 year old PJ Sports, one with 100,000 km and the other 200,000 km? In the UK its important but here not so much.