Motoring Discussion > Depreciation of other vehicles? Buying / Selling
Thread Author: movilogo Replies: 17
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 Thu 8 Mar 18 12:08 
 Depreciation of other vehicles? - movilogo
How the other types of vehicles (or anything to do with any kind of transportation) depreciate?

For example, what is typical price of a XYZ after 5 years?

Where XYZ could be:

Coach
Bus
Lorry
Loader/Digger/Excavator
Tractor
Railway Locomotive - Diesel
Railway Locomotive - Electric
Canal boat
Yacht
Commercial Jet (e.g. Boeing 737)
Cruise Ship

etc.
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 Thu 8 Mar 18 13:21 
 Depreciation of other vehicles? - Ambo
I don't know about price, but I think 75-80 per cent depreciation over 5 years is a fair ballpark estimate for all types.
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 Thu 8 Mar 18 17:05 
 Depreciation of other vehicles? - Zero
>> I don't know about price, but I think 75-80 per cent depreciation over 5 years
>> is a fair ballpark estimate for all types.

Not at all, half of those listed do not depreciate at that rate.
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 Thu 8 Mar 18 18:58 
 Depreciation of other vehicles? - CGNorwich
Absolutely right. Got an excellent price for the last couple of cruise ships I sold on eBay.
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 Thu 8 Mar 18 19:09 
 Depreciation of other vehicles? - Runfer D'Hills
My dad bought a new Volvo 144 in 1970, ran it for two years and sold it for slightly more than he originally paid for it.

That's when we had proper inflation of course, not this namby pamby modern stuff...

;-)
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 Thu 8 Mar 18 19:37 
 Depreciation of other vehicles? - Zero
>> Absolutely right. Got an excellent price for the last couple of cruise ships I sold
>> on eBay.

still got the 737 in the back garden then?
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 Thu 8 Mar 18 20:13 
 Depreciation of other vehicles? - rtj70
The 737 should hold it's value better than a A318. I'd say depreciation will be about $1.4M per annum on average for the jets. So keep one for 21 years (seems typical) and that's a loss of say $30M (rounding to nice round numbers).

But are we talking market value or the value of the asset? Airlines will depreciate aircraft quickly to begin with so they can write off some of the cost as expenditure. When they sell it they can make more of a profit.
Last edited by: rtj70 on Thu 8 Mar 18 at 20:14
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 Thu 8 Mar 18 20:18 
 Depreciation of other vehicles? - rtj70
I wonder what this will be worth in 40 years time - and how many refits it has needed?

www.usatoday.com/story/travel/cruises/2018/01/02/new-cruise-ships-2018-royal-caribbeans-symphony-seas/985210001/

Apparently $1.35 billion when ordered. Should have got two in case someone breaks one. It can take over 5500 passengers - watch out for the noro virus!
Last edited by: rtj70 on Thu 8 Mar 18 at 20:19
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 Thu 8 Mar 18 20:28 
 Depreciation of other vehicles? - Zero
Friend of mine has just bought a catamaran, a gert big one that can sail to the Caribbean if you want. Its difficult to quantify depreciation on these because the list price varies so much by added features and spec, and upgrades during life, but basically they have a 6 year old one that cost 65% of its new list price. Even so they have lashed out nearly 1/2 million quid!
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 Thu 8 Mar 18 20:55 
 Depreciation of other vehicles? - Boxsterboy
Dad bought a new yacht in 1973 (just before VAT came in) for £7,000. He sold it 15 years later for £14,000. But of course £14,000 in 1988 was worth less than £7,000 was in 1973.
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 Thu 8 Mar 18 21:00 
 Depreciation of other vehicles? - rtj70
That's the thing with depreciation. Take the aircraft example. Bought new for say £40M and worth £10M in 20 years. But the £10M in 20 years is not worth the same as £10M now.
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 Thu 8 Mar 18 20:58 
 Depreciation of other vehicles? - rtj70
A friend of my brother's in the US took his passion for sailing in the UK to new heights when he moved over there. Eventually he bought a large yacht to live on... not sure actual size but it was big enough for permanent living arrangement so maybe 50 foot?

Anyway when berthed it would be plugged in for power, Internet etc. But here's the thing he'd go off sailing all over the place and be 'working'. His manager was aware - he was a genius at what he did.

So he could be off the coast of say Chile and he'd be wanted on a customer site. He'd sail to a port with a nearby airport, leave the yacht berthed, fly to the US and attend to the problem (on expenses) and then go back to the yacht. What a great life if that's what you like doing.

But he was still 'working' because he had Internet access when sailing. I work from home nearly all the time these days - he worked from the Pacific ocean :-)
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 Thu 8 Mar 18 21:06 
 Depreciation of other vehicles? - sooty123
What was his job, something IT related?
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 Thu 8 Mar 18 21:11 
 Depreciation of other vehicles? - rtj70
>> What was his job, something IT related?
>>

Clue was in Internet access I guess. Yes a really good IT guy who knew how to debug and tune operating systems at a kernel level. Microsoft tried to head hunt him in the late 90s to help sort out Windows NT performance.
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 Thu 8 Mar 18 22:03 
 Depreciation of other vehicles? - Boxsterboy
The one constant with car depreciation, with very very few exceptions, is that the higher the new price, the bigger the depreciation!
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 Thu 8 Mar 18 22:39 
 Depreciation of other vehicles? - legacylad
That’s me stuffed then. I paid full list....just hope the wait time doesn’t reduce too much over the next few years for the Barbie mobile
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 Thu 8 Mar 18 22:44 
 Depreciation of other vehicles? - tyrednemotional
...is it a diesel? (I can't remember).

AIUI, Porsche have just killed off the diesel version, meaning yours may become a collectors item (or a white elephant, depending on your luck ;-) )
Last edited by: tyrednemotional on Thu 8 Mar 18 at 22:44
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 Thu 8 Mar 18 22:58 
 Depreciation of other vehicles? - rtj70
Inflation itself will reduce the value of any asset that depreciates. I know that's an obvious thing to say.

Buy a nice new camera today for £500. If you could sell it for £500 in ten years time then that's still worth less than you paid for it. Bigger value items impacted more of course, e.g. cars which also depreciate a lot (as do cameras).
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