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I have a question about the amount of money we have spent regularly servicing, maintaining, and repairing our 1997 Subaru 250T.

It was purchased in January 2001. Thus far it has cost us $100 every month since purchase to keep the car in safe running order.

This accounts for regular service, essential repairs, recommended repairs, and two sets of tyres.

At a little over $1250 per year since purchase this seems high to me. It does not include running costs (petrol, WOF, Registration, Insurance).

The car cost us $25,500 and yesterday we were told that as a trade it would be worth around $2000.

This means depreciation has been about $277 every month since ownership (7.5 years ago).

The real depreciation, because we financed the car through a loan, is in fact a lot more than this.

If someone had told me that my car was going to cost in the vicinity of $400 every month to keep in good road worthy order I would have told them to jump.

It is a staggering figure!!

Do you have any information on average running costs of vehicles/ depreciation etc.

My wife and I are shaking our heads in disbelief as to the amount of money we have shelled out on this car.

So please if you can, are you able to tell us if this is about right or absolutely ridiculous.

I must admit I am a little loss for words at this reality.

Kendall

From the "Ask Jack" archives - 11 December 2009

Unfortunately a lot of what you are saying holds true for many motorists, you are not alone.

You do not mention the distance you have travelled in the past 7.5 years but working on the average of 14,000km's per year the Subaru could have travelled approx 100,000km's since you took ownership back in 2001.

The resale price is always going to be affected by age and distance travelled and in most cases head downwards.

I note also that when you purchased the car, it was just four years old, which is an age where most vehicles can demand good retail prices.

With the escalating fuel prices and the current NZ economy, cars in general have become harder to sell and unfortunately Subaru's do have a reputation for consuming more petrol than the average because of their All Wheel Drive system, which has a big effect on their value in today's market.

All these things, which were not an issue 7 years ago, suddenly become a problem when buyers start to dry up or are looking for other more fuel efficient makes and models.

Another unfortunate reality with the Subaru product in general, is their potential to cost more to maintain than say a mainstream Japanese make such as a Toyota, Nissan, Honda or Mazda. Once again, seven years ago people wanted to buy these vehicles because they were different, went well and accepted the running costs as part of the package.

I'm sure there are Subaru owners who have spent less than you, but there will be plenty who have spent the same if not more.

Borrowing to buy a car is very common in NZ but you have to accept you are borrowing against a depreciating asset and sometimes the interest rates and retail values at the end of ownership is a scary thought for many.

Finally the price you have been offered as a trade-in, is always lower than the possible retail price the car will actually fetch. Car dealers allow for reconditioning and then add a good margin on before on-selling the vehicle. They also expect to be offered less than their asking price, so may end up with smaller profit margins than what you think.

Kendall, if you are considering trading up, go to a reputable motor trader first or spend some time trying to get the best deal possible on both your Subaru as a trade, and the car you are looking at buying.

Happy to advise further if you do see a car you like and want to upgrade