Why are used BYD S6 cars so cheap?

[Bryan]

BYD S6 used cars are inexpensive primarily because their engines and transmissions are independently developed, resulting in lower costs and correspondingly lower prices. Here are several valuation methods for used cars: 1. Time-based calculation: Annual depreciation = original value / expected service life. For example, a 100,000 yuan car with a 10-year expected service life would depreciate by 10,000 yuan annually. This means at the end of the first year, the car's value is 90,000 yuan; at the end of the second year, it's 80,000 yuan, and so on. 2. Mileage-based calculation: The "54321" method. Generally, American, Japanese, and German cars have an effective lifespan of around 300,000 kilometers. Beyond this, maintenance costs may exceed the car's value. Divide a car's effective lifespan into five segments of 60,000 km each, with each segment's value being 5/15, 4/15, 3/15, 2/15, and 1/15 of the new car price respectively. 3. Formula-based calculation: Current price of the evaluated vehicle = replacement price (current new car price) × (1 - years used / specified service life) × 100% × adjustment factor. Here, (1 - years used / specified service life) × current new car price.