GM (General Motors) used to boast a car for every purpose and purse. They probably achieved it with Cadillac, Buick, Oldsmobile, Pontiac and Chevrolet.
What’s the situation today?
Taking into consideration the mix of old and new a car might depreciate some £1,200.00 per year.
If the average car new and used costs £10,000.00 the interest or opportunity cost at 6% flat per annum would be £600.00 per annum. We’re up to £1,800.00 in depreciation and interest alone.
Now add £145.00 for vehicle excise duty and £300.00 for insurance. Subtotal £2,245.00.
Say an annual service costs £200.00 and you spend the same on tyres and brakes – on average per year. Subtotal £2,645.00
Tank up with liquid gold to the tune of £1,500.00 per year and you have a grand total of £4,145.00 to run a car. That’s if nothing goes wrong.
So how much money do you clear after tax and what percentage are you paying for motoring. 40 years ago motoring used to take 25% out of a purse.
Is your clear money higher or lower than £16,000.00 and are your costs higher or lower than my guesstimates above?
Interesting! Time to Get Real.
