Used Car Values
By Hanna Nilson
Calculating your used car values can be tricky.
For example, did you know that the very moment you drive a brand new
car off the lot; it already begins loosing hundreds or even thousands
of dollars in value? This is because car depreciation is one of the
greatest factors in determining used car values. In any case, buying a
car is a financial drain. So if you spend smart, you may find yourself
saving lots of money over time.
Used vehicles are often some of the best values
you'll find because you avoid the biggest expense associated with used
car values - depreciation. For example, a brand new Lexus ES 300 is a
safe and reliable vehicle that typically costs $40,000. However, a
2002 - 2006 make of this same used car values from anything between
$9,000 to $20,000. Obviously, there is no absolute way to assume
across-the-board savings, because every used car is different.
Depending on the mileage, maintenance and/or any vehicle damage, your
used car values may be significantly higher or lower. In fact, itís
been proven that the average used car loses 65% of its value after the
first 5 years. In addition to maintenance, repairs, interest on the
loan and insurance expenses, you can see used car values quickly
deplete and turn into an enormous disbursement.
Buying a Used Car with
How to Find Actual
Although used car values do
eventually depreciate over time, they don't suffer the same huge
drop in value that most new vehicles do when they drive off the car
SafeCarGuide.com says, ďA stabilized rate of depreciation (7% -
12% per year) makes used cars a better value than new ones. New
vehicles lose an average of 20% of their value the instant they are
driven away from the dealership. When coupled to the average yearly
depreciation of 7% to 12%, your first yearís loss is anywhere from
25% to 35%. That translates to a first year $6,000 to $8,000 loss on
a $22,500 new vehicle, or a $10,000 to $15,000 loss on a $40,000
one. And thatís for a vehicle only driven the average 13,500 miles.
If you drive more than that, your depreciation will be greater (35%
to 50% for the first year).Ē These numbers are quite significant
because they can either make or break your overall automotive
vehicle investment. If manipulated correctly these rates could be
utilized as an advantage for the value of your used car.
information to consider when trying to verify used car values are the
used car year, make, model and style or trim. Also, it helps to be
realistic about the condition of the car. If there has been any damage
or accidents, this might considerable reduce your used car value.
Researching your used car values by using sites such as
KBB.com may also help establish a
more accurate estimate. These are only a couple of suggested sites to
check out, but there are literally thousands of options for
determining your used car values. Using such resources for calculating
your used car values will help compare pricing for your vehicle of
5 Signs of a
Reputable Used-Car Dealer
Shopping: Used Cars for Sale Online
Is it Time to Refinance Your Car?
Should You Buy or Lease Your Next Car?