How to Calculate the Depreciation Rate of Used Cars?

[RebeccaLynn]

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.