Tuesday, August 25, 2009

Car Deprication

We all know that secondhand cars a worth much less, even if nearly new. But do cars really lose half their value the moment you drive it out the dealers? Well according to "leading experts" most cars lose 15%-20% of their value within the first year, so not half the value, and not on the way out the door. But cars do depreciate quickly, the AAA study put the average deprecation of a new car at 3,392 a year. So that brings up the question, which cars depreciate the fastest? Well...

2006 Best Resale Value*2006 Worst Resale Value*
BMW 5 SeriesChrysler Sebring Sedan
Chevrolet CorvetteFord Freestar
Honda Accord HybridMercury Monterey
Infiniti G35 CoupeKia Optima
Infiniti M45Jaguar X-Type
Lexus GX 470Kia Rio Sedan
MINI CooperFord Ranger Long Bed
Porsche CayenneChevrolet Uplander
Toyota PriusPontiac Montana
Volvo XC90Chrysler Town and Country
* In alphabetical order Source: Kelley Blue Book

Car depreciation is often due to people's perception, if the type of car used to be unreliable the buyers perception will be that it is an unreliable car, even if it isn't, and unreliable car's depreciate faster. Other contributing factors can be colors or accessories. A bright purple car probably won't sell so easily, as a black one will. And of course some cars will just always be sort after eg. Mini Cooper, Porsche Cayenne, BMW, Corvettes and such other cars. They just won't depreciate like standard cars.
So that's it boys and girls hope you learned something, see you next time.

Dan B

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