How is the resale value of a new car calculated?
2 Answers
New car resale value equals the purchase price of the new car minus the purchase price of the new car multiplied by the number of months the insured vehicle has been used multiplied by the monthly depreciation rate (0.6% for 9 seats or fewer; 0.9% for 10 seats or more). Below is more information about resale value: 1. Definition of resale value: Car resale value has always been an important part of car cost-effectiveness. The so-called resale value refers to the ratio of the selling price of a certain model after a period of use to its previous purchase price. Resale value depends on multiple factors such as the car's performance, price fluctuation range, reliability, parts prices, and maintenance convenience, reflecting the comprehensive level of the car. 2. Influencing factors: (1) The identity characteristics of the vehicle. (2) Brand market share.
Calculating the depreciation rate of a new car is quite simple. It's essentially about seeing how much your car can be sold for after a few years, dividing that by the original price you paid for the new car, and then multiplying by 100 to get a percentage. For example, if I bought a new car last year for 100,000 yuan and now, after three years, it's estimated to sell for 60,000 yuan, then the depreciation rate would be 60%. The higher this percentage, the more valuable the car is. Considering depreciation when buying a car is important, especially the brand factor. Cars like Toyota and Honda generally have high depreciation rates because they have fewer faults, and everyone recognizes the quality of these brands. Regular maintenance is also crucial—don’t let the car get damaged or be involved in major accidents, otherwise, its value can drop quickly. I’ve learned this the hard way; minor scratches that I didn’t pay attention to ended up costing me a lot when I sold the car. Also, changes in market supply and demand play a role. For instance, electric vehicles are hot right now, so their depreciation rates are rising faster.
