1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178 
Know how much you're losing
Page 71
If you've noticed an error in this article please click here to report it so we can fix it.
Vehicle depreciation is an essential factor when calculating your fixed running costs, but it's sometimes more of an art than a science...
There are three ways to work out your vehicle depreciation costs. Let's assume your truck has a five-year service life. For the straight-line method simply take the purchase price (less initial tyre equipment) and divide by five. For the reducing balance method take the purchase price (less initial tyre equipment) and knock off 20% for each year. Or you can simply use CAP Monitor.
To keep itself sharp CAP Monitor analyses its performance by comparing three-year-old forecast values with the prices achieved in today's market. John Watts, senior forecast manager at the Commercial Vehicle Monitor, explains that the "key to the accuracy of these forecasts is a process that is far more factually based than many people understand.
Forecast accuracy
"This audit reveals that we have again accurately analysed all the factors impacting on the used values of these vehicles, from their historical performance to issues such as production volumes, transaction prices, the country's economic conditions and the overall growth of the market."
He obviously knows his stuff: many estimates made three years ago are within £25 of the current market value.A cross-section of 50 vans reveals an average just £100 short of current prices.
CAP Monitor says: -This variance represents less than £20,000 on a fleet worth more than £1,000,000 and stands as testament to Monitor's continued reputation as the industry benchmark for forecast residual values."
Examples of this accuracy include the Vauxhall Astra Envoy 1.7DTi. It was predicted to fetch £3350 after three years and 60,000 rniles;its actual value is £3.375.The Peugeot Expert 1.9 was forecast at 13,775,compared with an actual value of £3,800. Among medium panel vans, the Renault Master SL28 D low roof was valued at £4.025 and is currently valued at £4,050. While getting out the calculator and number crunching won't completely go out of fashion, predicting values to the last pony might make you that bit more competitive. I