Comparing Apples To Other Apples
I went to the RV show yesterday in (where else) Dallas. The Big D. I went with a particular Jayco travel trailer in mind and I also looked at some similar models from other manufacturers. A 37 foot...
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Wing Zealot
I didn't forget it. That's where the depreciation comes in. Sure you have to pay principal, but if there's no depreciation you would get it all back when you sell it. Maybe that's confusing, but as a former CPA I'm pretty sure my logic is sound on this one. In this case the $20 depreciation doesn't look like enough, but that's because I'm just looking at the difference between the two vehicles.
Edit: Thinking about this further, if the two vehicles lost 50% of their value over 10 years that would be a difference of $3,500 divided by 120 months for a difference in depreciation of about $30 per month. So maybe my $20 depreciation should be $30 depreciation. How much value do you think they would have left after 10 years? Anyway, the total difference is probably still under $100 per month. I was thinking today, if I was comparing two apartments and one was a lot nicer and the difference was $100 per month, I'd take the nicer apartment.
I didn't forget it. That's where the depreciation comes in. Sure you have to pay principal, but if there's no depreciation you would get it all back when you sell it. Maybe that's confusing, but as a former CPA I'm pretty sure my logic is sound on this one. In this case the $20 depreciation doesn't look like enough, but that's because I'm just looking at the difference between the two vehicles.
Edit: Thinking about this further, if the two vehicles lost 50% of their value over 10 years that would be a difference of $3,500 divided by 120 months for a difference in depreciation of about $30 per month. So maybe my $20 depreciation should be $30 depreciation. How much value do you think they would have left after 10 years? Anyway, the total difference is probably still under $100 per month. I was thinking today, if I was comparing two apartments and one was a lot nicer and the difference was $100 per month, I'd take the nicer apartment.
