i have been thinking for a while about the annual rate of depreciation chargeable on cars used in Nigeria.

Here is my story,

I tried to sell a 2001 Camry bought last year that clocked a year some weeks back. The price offered by prospective buyers was worrying viz a viz the purchase cost.

1.3M car now being priced for 800k after a year! Eventually sold it for 850k.

Mathematically, that is approx 35% off the purchase cost.

It is noteworthy that there was no damage of any sort apart from the bruises suffered by the bumpers(minor).

In accounting, we charge 25% as yearly depreciation. A new vehicle after four years has just been given birth to i dare say

I understand that as a car grows older, the rate may perhaps increase marginally but 35% is way too high

Buying a car is not an investment at all! Lately, i have been thinking of applying the same strategy in buying a car.

look for my choice car and buy 'a year used' model thereby making the owner suffer for the 35% depreciation rate.

Bright idea?

fizzybaba:

i have been thinking for a while about the annual rate of depreciation chargeable on cars used in Nigeria.

Here is my story,

I tried to sell a 2001 Camry bought last year that clocked a year some weeks back. The price offered by prospective buyers was worrying viz a viz the purchase cost.

1.3M car now being priced for 800k after a year! Eventually sold it for 850k.

Mathematically, that is approx 35% off the purchase cost.

It is noteworthy that there was no damage of any sort apart from the bruises suffered by the bumpers(minor).

In accounting, we charge 25% as yearly depreciation. A new vehicle after four years has just been given birth to i dare say

I understand that as a car grows older, the rate may perhaps increase marginally but 35% is way too high

Buying a car is not an investment at all! Lately, i have been thinking of applying the same strategy in buying a car.

look for my choice car and buy 'a year used' model thereby making the owner suffer for the 35% depreciation rate.

Bright idea?

Nice thought there.

But I hope you are not thinking of Naija used.

@OSAMA 10

yes, naija used! any prob?

@fhemmy

u got me thinking. I guess the lessons learnt is to excercise great caution in buying a car you wouldnt have to dispose off quickly