My Personal Finance Journey

Personal finance observation, musing and decisions in a journey toward financial independence by 2020 with at least $3 million.


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Update of Car Value - 2/6/2004

Contributed by mm | February 6, 2004 10:03 PM PST

Since last update one month ago, I drove 1,400 miles and my car mileage is now 36,800. (For new readers of this site, I started a monthly habit to track my car value since October.)

Here is the current value of my Camry 2000 LE according to Edmunds.com:

Trade-In Value: $11,044 (Last Month = $11,353, Change = $309)
Private Party: $12,571 (Last Month = $12,864, Change = $293)
Dealer Retail: $14,281 (Last Month = $14,514, Change = $233)

I must say compared to prior months this month sees a pretty rapid drop of my car value. For comparison purpose here is a breakdown of my monthly car value record (using Trade-In Value only):

Month

Trade-In Value

Monthly Change

Change vs Oct 2003

Avg Monthly Change

Odometer Reading

Monthly Usage

Change vs Oct 2003

Value Loss Per Mile

Book Value

Trade-In as % of Book

Oct-03

 $11,711

 

 

 

      32,200

 

 

 

 $10,050

117%

Nov-03

 $11,628

 $(83)

 $(83)

 $(83)

      33,400

        1,200

        1,200

      $(0.07)

 $9,875

118%

Dec-03

 $11,752

 $124

 $41

 $21

      34,100

           700

        1,900

        $0.01

 $9,700

121%

Jan-04

 $11,353

 $(399)

 $(358)

 $(119)

      35,400

        1,300

.       3,200

      $(0.04)

 $9,550

119%

Feb-04

 $11,044

 $(309)

 $(667)

 $(167)

      36,800

        1,400

        4,600

      $(0.04)

 $9,400

117%

Two findings out of the table:

1) By simple math, each additional mile driven equals to 4 cents of additional depreciation. (Of course the relationship is not linear -- car value will drop over time even it is locked in the garage all the time.)

2) My bookkeeping is still conservative: the trade-in value is 17% higher than the value I reported in my monthly net worth report. (This fact is comforting that I don't over-estimate my net worth over time.)

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