
Originally Posted by
Dougal
If you barely drive a car (under 6000km a year) then yes depreciation will beat fuel cost for the time you have it.
The extreme example is parking it up and watching the value drop.
But over the useful life of that car the fuel cost will still trump depreciation. The only exception is the car getting destroyed before it reaches high mileage.
Total fuel cost = Total km driven / fuel economy (km/litre) x $ per litre.
Simple example.
Total fuel cost = 300,000km / 10 km/litre x 1.5
Total fuel cost = $45,000
Compare total fuel cost to the total you paid for the vehicle and things start to get really interesting.
There are a staggering number of vehicles which will consume more than they originally cost.
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