What is the depreciation rate of the Bora?
2 Answers
The depreciation rate of the Bora depends on factors such as time, mileage, and vehicle condition. Generally, for a new car around 2 years old, the minimum depreciation is approximately 20%. Regulations on car depreciation rate: The standard depreciation rate for cars is typically 11% for the first 3 years, 10% from the 4th year onward, and 9% for the subsequent 3 years. Specifically, the annual depreciation rate is 11% for the first 3 years, totaling 33% over this period. From the 4th year, the annual depreciation rate is 10%, resulting in a total depreciation of 40%. For the next 3 years, the annual depreciation rate is 9%, totaling 27%. According to tax regulations, the depreciation period for passenger cars is 5 years, with a residual value rate of 5%. Introduction to car depreciation rate: The depreciation rate of a motor vehicle refers to the ratio of the current market value of a used car in the trading market compared to the value of a new car of the same model in the current market. The depreciation rate numerically equals its physical wear rate; the worse the vehicle condition, the lower its remaining value.
Experience from owning used cars tells you that popular models like the Bora suffer the steepest depreciation in the first year, losing at least 15%-20% of their value as soon as they're driven off the lot. After about three years, they retain roughly 60% of their original value—for example, a 1.5L automatic transmission model bought for 120,000 yuan might now fetch just over 70,000 yuan in the used car market. At five years old, it could still sell for around 45% of its original price, but beware that older models became less valuable after the implementation of the China VI emission standards. If you're planning to upgrade, selling between three to five years is the most cost-effective, especially if the mileage is under 100,000 km, as you can negotiate a better price. While German cars generally don't hold their value as well as Japanese models, the Bora stands out for its affordable maintenance and readily available parts.
