How to Calculate the Resale Value of a New Car?
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 vehicles with 9 seats or fewer; 0.9% for vehicles with more than 10 seats). Here is more information about resale value: Definition of resale value: Car resale value has always been an important component of a car's 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. The resale value depends on multiple factors such as the car's performance, price fluctuation range, reliability, spare parts prices, and maintenance convenience, reflecting the comprehensive level of the car. Influencing factors: Vehicle identity characteristics. Brand market share.
Calculating the depreciation rate of a new car is quite simple. It's the resale value of your used car after a few years divided by the original purchase price of the new car, then multiplied by 100%. For example, if I bought a car for 150,000 yuan last year and estimate it can be sold for 90,000 yuan this year, then 90,000 divided by 150,000 multiplied by 100% equals a 60% depreciation rate. There are many factors that affect this number: the brand is very important, with brands like Toyota and Honda typically having higher depreciation rates; proper maintenance with complete service records can increase the depreciation rate; no major accidents; and market supply and demand, with depreciation rates rising when cars are in short supply. It's normal for a new car to depreciate by about 20% as soon as it's driven off the lot. Calculating the depreciation rate in advance can help minimize losses when buying a car.
