Monday, July 30, 2018

new car depreciation... unexpectedly, I was surprised to learn there are 2 ways to perceive it. Dollars, and percents. How much a brand loses value in, say, 5 years... or, how much a percent of the purchase cost it loses.

This chart in Car and Driver was cool to take a look at. The very next issue, a subscriber brought up a brilliant observation in the letters to the editor.

looking at any one make and model, say the Rolls Royce Phantom, which loses X number of dollars, maybe it's $200,000 in 5 years.

Seems bad.

Then they pointed out that though a Mustang or Camaro loses only 15 or 20 thou in those same years, it loses the same percent of the purchase price. Remember, I'm just using examples that have nothing accurate about them... to point out the luxury level millionaire stuff, vs the more common sporty car stuff, was all the reader was talking about.

I was, however, surprised to read that the examples the reader chose (not the ones I just did above) were nearly identical losses, in terms of the percent of original sales price the vehicles depreciated.

Food for thought. 

1 comment:

  1. worst one Ive seen is the Porsche SUVs
    about $170K new and 9 years later they sell for less than $10K

    i just bought a nice full size 12 yr old 4wd suv with every available option, from the original owner, 90K miles, cost $52K new, I paid $3,500