In my newest book, Introduction to Management Accounting, I discuss the depreciation of fixed assets. Since I am working on a previously unpublished version of this book, I was keen to provide more up to date information than before so I went to the Parkers Car Price Guide and found the latest new and second hand prices for three car marques: BMW, Volvo and Porsche.

There is nothing startling with what I was doing except that this morning I came across an article in The Times newspaper that was bemoaning the depreciation rates being suffered by various cars, including the Volvo S80 and the Porsche 911. Since I had chosen the BMW 320d as the basis of my work, I thought I would prepare a work book and summary of these three cars.

One of the things they said in The Times was that the Volvo S80 is worth just 19.3% of its new price and the Porsche 911 is worth 55.3% of its new price … they didn’t say how old these cars were; but you will see in my dashboard summary, below, that after 7 years, the Volvo S80 drops to 35.64% of its new price whereas the Porsche 911 reaches 41.68% after seven years. The seven year old BMW 320d is worth 45.89% of its new price. I have based my values on what Parkers Price Guide calls Private Good: a car in good condition in a private sale.

Here is my dashboard:

Interesting, I think!

Duncan Williamson

One Response to “Depreciation Schedules: BMW, Volvo and Porsche”

  1. Emmett Says:

    It is in reality a great and helpful piece of info.

    I am happy that you simply shared this helpful information with us.
    Please stay us up to date like this. Thank you for sharing.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: