Buy or rent a car calculator
- Thread starter Kotep
- Start date
NARAYANK991
Excel Ninja
Hi ,
Wouldn't the principle be the same ?
Whether it is a house or a car , there are one-time fixed costs and recurring variable costs.
What the calculator does is find the present value of this combination over any given time period. There may be also be a resale value at the end of the period.
In the case of a house , the one-off cost is the purchase cost + the registration cost ; there may be more costs depending on the prevailing laws.
The variable costs may be insurance , municipal taxes and others ; there may also be recurring maintenance costs.
Thus , you basically need to calculate the net present value of your investment in a car as against your expenses in renting a car x times a year over the same period.
See the following link for some help :
http://www.nextbigwhat.com/car-ownership-india-vs-renting-297/
Note that this is specific to India.
Narayan
Wouldn't the principle be the same ?
Whether it is a house or a car , there are one-time fixed costs and recurring variable costs.
What the calculator does is find the present value of this combination over any given time period. There may be also be a resale value at the end of the period.
In the case of a house , the one-off cost is the purchase cost + the registration cost ; there may be more costs depending on the prevailing laws.
The variable costs may be insurance , municipal taxes and others ; there may also be recurring maintenance costs.
Thus , you basically need to calculate the net present value of your investment in a car as against your expenses in renting a car x times a year over the same period.
See the following link for some help :
http://www.nextbigwhat.com/car-ownership-india-vs-renting-297/
Note that this is specific to India.
Narayan
NARAYANK991
Excel Ninja
Hi ,
I am not sure but I don't think so.
However , that is something that members of this forum can help develop , provided you can supply the data.
First , list down all the initial expenses you will incur in purchasing a new car , including the addition of a garage if you don't have one at present !
Next , list down all the recurring expenses you will incur in using and maintaining your car for the period you will retain it , say 10 years.
Lastly , list down the number of trips you will make in a year when you rent a car as well as the average fare you will pay for a trip.
If you can enter this data in an Excel workbook , and upload the workbook , members will help develop the calculations.
Narayan
I am not sure but I don't think so.
However , that is something that members of this forum can help develop , provided you can supply the data.
First , list down all the initial expenses you will incur in purchasing a new car , including the addition of a garage if you don't have one at present !
Next , list down all the recurring expenses you will incur in using and maintaining your car for the period you will retain it , say 10 years.
Lastly , list down the number of trips you will make in a year when you rent a car as well as the average fare you will pay for a trip.
If you can enter this data in an Excel workbook , and upload the workbook , members will help develop the calculations.
Narayan