Gas consumption? 2008 car bought in 2012?

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Hi, what is "gas consumption" - do you mean Average miles per gallon for this car, or do you mean amount of gas to be consumed on the trip in question?

Also, if car is 2008 Volvo model purchased in 2012, what should be entered for "useful life"?

Thank you.

Comments (2)

  1. Mad Tom repo owner

    Hi, the "gas consumption" is the average of miles per unit of fuell - in your case I guess "miles per gallon".

    Regarding your second question, I'm calculating the depreciation as a additional part of your costs for your car. I assume that a car is used for round about 13 years until it will scraped. I assume after this time the price of your carr is 0.

    This depreciation value depends on the age of your car and the time you will use it. For example, your car was build in 2008 and you purchased it in 2012 for $4500. In 2012 your car was 4 years old. The rest of the car-life is 9 years before the worth of your car is 0. For each year you are using your car, you have an depreciation of $500.

    The "useful life" is the time span you will use your car until you will sell it. If you will use your car for five years, you will have a depreciation of $2500. When your yearly milage is 10,000 miles a year, you have a depreciation of $0.05 for each mile you are going ( $2,500 / 50,000 miles in 5 years ).

    I hope I could help.

    Best regards, Thomas

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