What is the general residual value rate of a car?
1 Answers
The residual value rate of a car is generally 5%. The residual value of a car refers to the remaining use value within the specified reasonable service life of the vehicle. In foreign countries, consumers often consider residual value as the primary factor when purchasing a car. Methods for estimating car residual value: There are four main methods, including the present value of income method, replacement cost method, current market price method, and liquidation price method. Among these, the replacement cost method is the most fundamental and easiest to implement. Depreciation rate: The depreciation rate over 10 years is set at 100%, with 15% as the fixed residual value and 85% as the floating depreciation value. Generally, the depreciation period for used cars is divided into three segments based on the time until scrapping: the first 3 years, starting from the 4th year, and the last 3 years before scrapping. The typical depreciation rates are: 11% for the first 3 years, 10% starting from the 4th year, and 9% for the last 3 years. For the first 3 years, the annual depreciation rate is 11%, totaling 33% over 3 years; starting from the 4th year, the annual depreciation rate is 10%, totaling 40%. The calculation method for the 10-year depreciation value is: Appraisal value = current market price of a new car × [15% fixed residual value + 85% floating value × (1 − staged depreciation rate)] + appraisal value.
