4 ms·

> a 2.5 years (high mileage) old Corolla may still have some minimal residual value, let's say US$ 1,500. Even on the wholesale market, I'd wager it's several

> a 2.5 years (high mileage) old Corolla may still have some minimal residual value, let's say US$ 1,500. Even on the wholesale market, I'd wager it's several time that amount...

jaclaz 9y ago
I don't know, but I would expect 7,500 to 10,000 miles per year on a normal car, hence that would have in a 130 weeks/2.5 years some 25 thousands miles top. If (as it is reported here and there) an Uber driver needs to make 3,000 miles per month, the car after 30 months would be more likely to be in the 90,000 - 100,000 range, i.e. the same as a 10-12 years car, i.e. an "end of life" car. Even if only 2.5 years old, upholstery, seats, plasric accessories, etc will likley show the wear from use. Such a car can only be sold to "particular" customers. But if the value is bigger, then it is another reason why the 9,000 US$ lost per car are simply too much.
- JshWright 9y ago
  A 2014 Corolla with 120k miles in "average" condition books at $5-7k "trade-in" value (which tends to map pretty well to wholesale value).
  - jaclaz 9y ago
    Good, then if we use the lower US$ 5,000 as a reference, the "complete cycle" turns to be actually advantageous for Xchange. 15,860+5,000=20,860 against a cost (adding the costs of "basic maintenance", assuming an intervention every 5,000 miles of 100 US$ each) of 16,500+20*100=18,500 That is 2,360 over 18,500 in 2.5 years, roughly 13% or 5%/year interest (excluding administrative/managing costs).
- 0xffff2 9y ago
  >I don't know, but I would expect 7,500 to 10,000 miles per year on a normal car, hence that would have in a 130 weeks/2.5 years some 25 thousands miles top. I think that's way low. Over the course of several years and car insurance companies, the lowest any of them would let me estimate my annual mileage was 10,000 miles/year.
bsder 9y ago
Yeah, I want to see you buy a 2.5 year old car on the open market for less than $3,000 even with high mileage. I had to total out a 1997 Honda Civic due to a collision (which I got fixed, thanks), and the insurance reduced my payout by almost $2,000 because that's what they could get sight-unseen for a totalled car. Yeah, I was more than a little pissed.

> a 2.5 years (high mileage) old Corolla may still have some minimal residual value, let's say US$ 1,500. Even on the wholesale market, I'd wager it's several time that amount...

jaclaz 9y ago

I don't know, but I would expect 7,500 to 10,000 miles per year on a normal car, hence that would have in a 130 weeks/2.5 years some 25 thousands miles top. If (as it is reported here and there) an Uber driver needs to make 3,000 miles per month, the car after 30 months would be more likely to be in the 90,000 - 100,000 range, i.e. the same as a 10-12 years car, i.e. an "end of life" car. Even if only 2.5 years old, upholstery, seats, plasric accessories, etc will likley show the wear from use. Such a car can only be sold to "particular" customers. But if the value is bigger, then it is another reason why the 9,000 US$ lost per car are simply too much.

JshWright 9y ago
A 2014 Corolla with 120k miles in "average" condition books at $5-7k "trade-in" value (which tends to map pretty well to wholesale value).
- jaclaz 9y ago
  Good, then if we use the lower US$ 5,000 as a reference, the "complete cycle" turns to be actually advantageous for Xchange. 15,860+5,000=20,860 against a cost (adding the costs of "basic maintenance", assuming an intervention every 5,000 miles of 100 US$ each) of 16,500+20*100=18,500 That is 2,360 over 18,500 in 2.5 years, roughly 13% or 5%/year interest (excluding administrative/managing costs).
0xffff2 9y ago
>I don't know, but I would expect 7,500 to 10,000 miles per year on a normal car, hence that would have in a 130 weeks/2.5 years some 25 thousands miles top. I think that's way low. Over the course of several years and car insurance companies, the lowest any of them would let me estimate my annual mileage was 10,000 miles/year.

bsder 9y ago

Yeah, I want to see you buy a 2.5 year old car on the open market for less than $3,000 even with high mileage. I had to total out a 1997 Honda Civic due to a collision (which I got fixed, thanks), and the insurance reduced my payout by almost $2,000 because that's what they could get sight-unseen for a totalled car. Yeah, I was more than a little pissed.