How to Calculate the Depreciation Rate of Used Cars?
2 Answers
First year: 85% of the new car's ex-factory price, second year: 70%, third year: 60%, fourth year: 50%. Below is relevant information about used cars: 1. Introduction to used car residual value rate: When buying or selling used cars, it's crucial to understand a very important indicator—the residual value rate of used cars. The so-called residual value rate of used cars, in layman's terms, refers to the vehicle's value retention. After several years of use, how much a car is still worth in the market; the higher the residual value rate, the more valuable the used car is. To understand a car's residual value rate, several indicators must be clarified, such as whether the car's market presence is substantial enough, whether its color is mainstream, the brand of the vehicle, and the convenience of later maintenance, etc. 2. Precautions for selling used cars: The vehicle must be sold before the insurance expires; otherwise, an additional insurance cost will be incurred during the used car transaction. Additionally, pay attention to the replacement cycle of spare parts.
I frequently buy and sell cars and have found that the resale value retention rate is calculated by dividing the used car's selling price by the new car's purchase price and then multiplying by 100%. For example, if my old car cost 200,000 yuan when new and now sells for 120,000 yuan, the resale value retention rate would be 60%. Brand influence is significant—Japanese brands like Toyota and Honda generally have higher resale value retention rates, while German cars also perform well but depend on the model's popularity. Accident records and maintenance history are also crucial; once, a car that missed scheduled maintenance saw its resale value drop by over 10%. Additionally, high mileage and older models can drag down the value, so I recommend checking used car market reports for reference before buying or selling.
