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| 2008 Mercedes-Benz E-Class 550 Carrollton Texas |
Standard Luxury Vehicle Depreciation
Depreciation of your vehicle is a ugly thing. Most experts agree that a new car depreciates $3000-$5000 as soon as you drive off the lot. There are even website calculators devoted to guessing how much an average vehicle will lose. Check out Money Zine Depreciation Calculator to see how much your vehicle will depreciate before you pay it off. Also, Edmunds True Cost to Own Calculator can help in deciding which brands hold their value better than others.According to Bankrate.com:
Depreciation for Dummies
1) Rule of Thumb
Let's start with some basics. Here's a standard rule of thumb about used cars. A car loses 15 percent to 20 percent of its value each year. A 2-year-old car will be worth 80 to 85 percent of its 1-year-old value. A 3-year-old car will be worth roughly 80 to 85 percent of its 2-year-old value. Let's say you have a 1-year-old used car worth $12,000 that loses 15 percent of its value each year. At 2 years old, the car would be worth $10,200. At 3 years old, it would be worth $8,670.2) The First Year Sting
The depreciation in a car's first year tends to be even steeper. A new-car owner feels the sting immediately. A new car loses a big chunk of its value as soon as you drive it off the lot. Here's why.When purchasing the car, you paid a retail price -- the price a dealer charges for a car. As soon as you're off the lot, the car is worth its wholesale price, the amount a dealer would be willing to pay for a car should you turn around and head back.
3) Where did the Value Go?
So a brand-spanking-new car or truck loses thousands of dollars of value as soon as you drive it home. Whatever money you spent on taxes and licensing is gone for good as well."Just the difference between wholesale and retail prices is a large amount of what goes away right away," says Charlie Vogelheim, editor of Kelley Blue Book."
Save Car Value & Money
Unless you are leasing a vehicle, purchasing a 1-2 year old vehicle will save you thousands. Used cars hold their value much better. And, at BobStallingsCars.com, most of our PreOwned vehicles still have the remaining balance of their factory warranty which negates the cost of an extended warranty.For a real trade appraisal, call us, email us at Sales@BobStallingsCars.com or visit our website. We will give you a 10 day buy bid on your vehicle.
In the market for a car? We don't have it in stock? No Problem! We will locate you one for a fraction of what our competition will sell it for. Just email Sales@BobStallingsCars.com or take advatage of the vehicle finder tab on our site.
Call and talk to the experts today! 972.248.2277- 972.248.CARS
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Driving the Future of Car Buying
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