Laptop depreciation

[WaldoMcFroog]

I have been offered the opportunity to purchase IT equipment via the government�s Home Computer Initiative (HCI). Essentially, I would pay the cost of the kit back over a three year period through salary sacrifice � this 1/36 of the cost of from my gross salary every month. If I leave within the three year period I won�t be able to just hand back the kit. Rather I would be liable for paying a �fair market price� for the kit, associated VAT and employee benefits taxes.

My question, therefore, is how might I reasonably expect a laptop to depreciate over that period?

[WoWo]

In my opinion it would be about 1/2 the price each year. So if it was �1,000 then it would be �500 after a year �250 after 2 years, it would then stay around �250. Depends what sort of specification it was.

[Gandy]

You may want to consider the WEEE (Waste Electronic and Electrical Equipment) directive that is soon to be made law. I work as a waste managment consultant and a lot of my clients are expressing concern at the increased cost of throwing away redundant IT equipment. Very soon, most waste of this type will be banned from landfill and will need to be segregated at source, collected separatley to other waste streams and broken down into it's constituent part at an MRF facility. This will essentially drive down the fair market price of older equipment as companies will be looking to increase the life cycle of their IT equipment. This turn will force manufacturers and resellers to reduce the prices of new equipment in order to offset the cost of disposal to their customers.