Computatiion of Depreciation

[SlickStock]

Hello idols... I dunno if this is the right place to post my question. Moderators, please forgive me if i am mistaken. Well, here's my question... I've heard that it is an option to purchase a 2nd-hand vehicle around 3 years from its model year to do away with the dreaded depreciation. But how do we exactly compute the depreciation of a vehicle so that we can negotiate correctly, thus, purchase our vehicles at the right price or in other words, so that we won't be paying more than we should???

Please help me idol experts...

Thanks a lot...

[Retz]

usually 10% per year is the depreciation cost.

[Ry_Tower]

usually 10% per year is the depreciation cost.

so 10 years lang salvage value na lang auto?

AFAIK sa US depende sa brand ang depreciation. Toyota for example has 42% market value ata after 5 years from purchase value.

Car Depreciation Calculator for Calculating Auto Deprecation Costs

also, check adds in sulit and ayosdito to see comparable cars and their resale value.

[mark_t]

usually 10% per year is the depreciation cost.

For purposes of insuring a vehicle, the depreciation rate used is 10% to 20% per year based from the
Pro Forma Invoice or Standard Retail Price at the Dealer Brandnew.

You can probably use this also by checking the lowest Fair Market Value of the vehicle of your choice from
news paper ads, PIRA publications etc and use this as your higher limits.

Then factor in all faults you can find on the vehicle like thread wear, mileage,
scratches, incomplete service history, accidents to further lower its value.