Depreciation
 

Just happened to park near a local used car lot. The car for sale directly in front of me was another GLK. Looked perfect. It was a 2011 model GLK350 (delivered April 2011, so 4 1/2 years old). Price C$21,700. 104 k km (64k miles). Had a look on line and found many in that price range, some with much lower mileage.

In Canada, GLk 350s with equivalent options to the one I saw cost about C$47k +tax in 2011.

So in 4 1/2 years we have over 50% depreciation :eek:

That sounds about right - 20% in year one, and 15% per year therafter. What were you expecting?

That's reality car's aren't the smartest investment.

That's for sure!

By the way, the trade in value for that 2011 GLK would be in the C$15.3k - C$18.8 range.

April 2011 C$47k + tax = $53.1k
Nov 2015 trade-in, say C$17k (from black book)
Depreciation C$36.1k (76% of pretax purchase price!)
Dealer services over period ~C$1.5k
fuel for 104k km @ 11.3 l/100 = ~C$14k
Total cost (36.1+1.5+14) = C$51.6k
Cost per km 49.6c/km or 80c/mile (C$)

Canada Revenue Agency mileage average allowances were approx 53.5c/km for first 5000km and then 47.5c/km.

Not exactly cheap transportation but about what our government expects.

Our 2014 GLK250 cost about the same as that 2011 when bought in November 2013. Presumably depreciation will be similar, service similar and fuel costs about $6k less, so about 44c/km. That assumes same mileage. But if we only do our expected 44k km, that number jumps way up.

Anyway, just an observation. Buying a cheaper car seems to be only way to keep operating costs down. In Canada diesel helps if gasser needs premium.

depreciation sucks but buying new is the only way to get new. well, there's leasing too but you know what I mean! I avoided buying new for decades but now have 3 new vehicles (2 MBZs to boot!) with factory warranties. it's about time and is a good feeling. :)

Having a warranty does provide a good feeling! I had the extended warranty included in my purchase price and bought the 4 yr maintenance package. I plan on keeping the GLK for 7 or 8 years during which time most key systems will be covered. After that, I might just lease a less expensive, likely Asian car. Doesn't excite me though ;)