How to Calculate the Depreciation Rate of Used Cars?
3 Answers
The commonly used estimation method in the used car market is: the depreciation rate equals the purchase price of the used car divided by the ex-factory price of the corresponding new car. The specific details are as follows: 1. Calculation method of car depreciation rate: Based on the ex-factory price of the original car, using the auto industry's "10-year depreciation method," the car depreciates by 15% annually for the first 3 years after purchase, 10% annually for years 4-6, and 5% annually for years 7-10. 2. Definition of car depreciation rate: The car depreciation rate refers to the ratio of the selling price of a specific car model after a period of use to its original purchase price. It mainly depends on factors such as the vehicle's performance, price fluctuation range, spare parts prices, and maintenance convenience, essentially reflecting the comprehensive level trend of the vehicle.
Calculating the depreciation rate of a used car is actually quite simple. Just divide the selling price by the original price when it was new and multiply by 100. For example, if a car was bought for 200,000 yuan and sold for 150,000 yuan after three years, the depreciation rate would be 75%. Having bought and sold several cars myself, I've noticed that the depreciation rate depends on factors like mileage, maintenance records, and the car's popularity. Japanese cars generally hold their value better because they're durable and reliable, while German cars depreciate faster if driven hard. Avoiding scratches and regularly changing the oil can help you get a better price when selling, indirectly easing financial pressure. Recently, the used car market has been booming, and domestic electric vehicles are starting to hold their value better than gasoline cars. In short, always check the depreciation rate before buying a used car to avoid getting a bad deal.
To calculate the depreciation rate, don't overcomplicate it. Just divide the second-hand selling price by the original price and multiply by 100 to get the percentage. I remember the last time I helped a friend estimate his car's value - his domestic SUV was bought new for 150,000 yuan, driven for two years with 80,000 kilometers, and finally sold for only 100,000 yuan. The depreciation rate came out to 66%, which is obviously on the low side. Why? The mileage was too high, maintenance was poor, and there had been minor accidents. For daily driving, I recommend choosing brands like Toyota or Honda, which have high depreciation rates because they have fewer faults and cheaper repairs. Economy cars have worse depreciation rates, but since they're cheap to buy, it doesn't matter much. A high depreciation rate means less loss when changing cars. I always think it's linked to actual vehicle usage costs - wouldn't it be better to save more money for gas or travel?
