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Presented by:
Gicom, Angelica F.
Featuring
Price: P 845,000
Body Type: Sedan
Fuel Type: Gasoline
Seats: 5
Transmission: Manual
Doors: 4
ENGINE
Size: 1.5 L
Displacement: 1,497 cc
Number of Cylinders: 4
Number of Valves: 16
Transmission: 4-Speed Automatic
Price: P 420,000
Body Type: Sedan
Fuel Type: Gasoline
Seats: 5
Transmission: Manual
Doors: 4
All power
All original
DVD,CD,Stereo, Aux
Well maintained
Complete papers
Dual airbag
Table 1.0
Initial and Annual Costs of a Brand New and Second Hand Toyota Vios Car
422,500
420,00
INITIAL COST
Registration
Insurance
269,724/yr
ANNUAL COST
Amortization
LTO Registration
2,700/yr
2,000/yr
Comprehensive Insurance
25,000/yr
20,000/yr
TPL Insurance
950/yr
950/yr
Maintenance Cost
5,000/yr
20,000/yr
Fuel Cost
14,000/yr
17,000/yr
Table 2.0
Cost breakdown of owning and running a brand new car
INITIAL COST
422,500
I.
Down Payment
II.
Registration
FREE
III.
TPL Insurance
FREE
ANNUAL COST
IV.
Amortization
V.
Registration
VI.
TPL Insurance
VII.
Comprehensive Insurance
Fuel Cost
269,794
2,700
950
25,000
5,000
14,000
Table 2.1
Depreciation Of Brand New 2015 Toyota Vios Car
End of Year
dk
dk*
BV
845,000
845,000
845,000
169,000
169,000
676,000
845,000
135,200
304,200
540,800
845,000
108,160
412,360
432,640
845,000
86,528
498,888
346,112
845,000
69,222.4
568,110.4
276,889.6
Where:
B = Cost Basis
R = 0.2
k = Period of depreciation
dk = Depreciation Rate
dk* = Accumulated Depreciation
BV = Book Value
Cash Inflow And Outflow Diagram For Brand New Car (2016-2021)
Amortization
LTO Registration
Third Party Liability Insurance
Comprehensive Insurance
Maintenance Cost
Fuel Cost
Accumulated Cost in a year
Future Worth of the car
Table 3.0
Cost breakdown of owning and running a second hand car
INITIAL COST
I.
Purchased Amount
420,000
II.
Registration
III.
TPL Insurance
ANNUAL COST
2,700
2,000
IV.
Registration
V.
TPL Insurance
VI.
Comprehensive Insurance
25,000
VII.
Maintenance Cost
20,000
950
17,000
Based on 2012 Toyota Vios fuel efficiency: 12.34km/L
Table 3.1
Depreciation Of 2nd Hand 2012 Toyota Vios Car
End of Year
dk
dk*
BV
420,000
420,000
420,000
42,000
42,000
378,000
420,000
37,800
79,800
340,200
420,000
34,020
113,820
306,180
420,000
30,618
144,438
275,562
420,000
27556.2
171,994.2
248,0005.8
Where:
B = Cost Basis
R = 0.1
k = Period of depreciation
dk = Depreciation Rate
dk* = Accumulated Depreciation
BV = Book Value
LTO Registration
Third Party Liability Insurance
Comprehensive Insurance
Maintenance Cost
Fuel Cost
Accumulated Cost in a year
Future worth of the car
(
558,302.92
CONCLUSION
There are pros and cons of buying both new and used cars. New cars often come with special dealer offers and full warranty,
which means youre generally covered for repairs and parts if anything goes wrong. On the other hand, used cars are generally cheaper,
but their histories can be difficult to check and you simply dont know how well it has been treated. Thus, it is essential to check or inspect
the used car first before you negotiate to buy it. You can also take the car to a trusted mechanic for a thorough inspection.
By looking beyond the sale price and considering the total cost of buying a car, you can get a better idea of how much you are
really going to pay for the privilege of being the first owner of your car.
From the results and calculation, the second hand 2012 Toyota Vios is more economical than the brand new one. It is also
observed that depreciation doesnt happen at a constant rate, the new car loses value fastest the moment you buy it and then it will move
at a constant rate after few years. The brand new car loses 20% of its original price on the first year while the second hand car only loses
10% of its original value.