Perhaps everyone knows the allegation that as soon as you drive a few meters in a new car, it immediately depreciates by 30%. How true is this statement?
In fact, it is very difficult to say whether it is 100% true. The fact is that no one in real life has ever sold a newly purchased brand-new car after driving it only a few meters.
Even if a person wants to sell the car almost immediately, it still takes at least a year between buying and selling it. And this is already a significant period, and as a result there is a serious deprecation. It is just about 30%.
But even if you really want to sell your car within a few days after purchasing it (this happens very rarely, but still the probability of such an event is not zero), then deprecation will still take place.
Therefore, a fair amount of truth in the statement about thirty percent depreciation does exist. Depreciation is necessary, otherwise no one wants to buy a used car.
Devaluation is a completely natural phenomenon. It is quite obvious that if you put new cars and used cars at the same or almost the same price, then no one will buy used vehicles. Everyone will go buy new cars.
The Canadian Black Book (CBB) claims that during the first year after purchase, the car may lose in price 30%, and sometimes 40%. And this is if there is has no damage.
But it is impossible to predict in advance how much a particular car will be depreciated. It depends on both the model and the operating conditions. Demand and supply also vary greatly from year to year, and this has its effect on depreciation. For example, a fashionable car depreciates much faster than a good truck that can function properly for many years.
But there are also cases when a used car is sold at almost the same price as an absolutely new model.
George Iny, president of the Automobile Protection Association (APA), stresses that currently used cars are being financed by the dealer rates through a bank at 5% to 6%. In this case, a used car can have a total interest of $4,000 to $6,000, and for a new model this percentage will be zero.
The Canadian Black Book performs the retained value check every year. In so doing the following parameters are compared with each other: the original purchase price that the buyer pays when buying a brand-new car and the price of a four-year car. According to the results of this test, vehicles are awarded.
As a rule, the average rate reaches 52%. This means that four years after the purchase, the vehicle depreciates approximately by up to 50 per cent. At the same time the rate of depreciation for vehicles of different classes varies greatly. Fashionable luxury cars lose their value faster than any other. Four years after the purchase, they lose about 73% of their original value. Small trucks save their cost best of all. In four years, the loss will be about 27%.
Toyota is always a record-holder when it comes to saving the cost. These cars are very reliable and durable, so the cost of a used car is not much different from the cost of a new one.
Unfortunately, the Canadian Black Book does not publish depreciation numbers for each vehicle model, although such tables would be very convenient both for sellers and for buyers. But it is known for certain that the Toyota Tacoma pickup and the powerful Jeep Wrangler SUV save their costs best of all. During the first year after purchase, these cars lose in their value not 30%, but only 5%.
Sure, buying a used car saves casts well. For example, a new Audi A4 will cost you about as much as a used Audi A6. But you still need to be aware that a new car is still in most cases better than a used one. Today, automotive technology is changing at such a tremendous rate that every year cars become more comfortable and safer. Therefore, the two- or three-year model will not have those gadgets and security systems that are installed on the new models. Hence, often the savings when buying a used car turn to be not so significant as one might initially think.