Quote:
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Originally Posted by bwilson4web
There are four numbers needed:
HCH purchase price
HCH blue book price "n" years later
HC EX purchase price
HC EX blue book price "n" years later
Let me give you an example using the 2001 Prius and 2001 Echo. In 2001 we had to choose between a 1500 cc Prius and a 1500 cc Echo:
$21,000 - Prius 2001, new purchase price
$09,500 - Prius 2001 Ebay "Buy it now" (117,445 miles) #4616782257
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$10,500 - depreciation
$14,200 - Echo 2001, new purchase price (ours)
$06,800 - Echo 2001 Ebay "Buy it now" (77,388 miles) #4618008441
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$07,400 - depeciation
Prius depreciation cost higher, $3,100 over 5 years . . . CR reports $3,200. Close enough.
Good luck!
Bob Wilson
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There is nothing wrong with
worthywads math. Using his method on your numbers $6800 (2100 - 17,200)original difference in cost, 2700 (9500 - 6800) current difference in cost yeilds the exact same $4100 (6800 - 2700) depreciation cost over 5 years you should have come up with. You do not need the original costs, only the original
difference in cost.
The only math error I see is that 21k minus 9.5k is 11.5k.