How to depreciate a car?

[jankristopher]

[SIZE=3]Hello. I hope I'm in the right section. I would like to know how to depreciate a car. We are planning to sell one of our cars, but I don't have an idea as to how much value should be deducted on a yearly basis. Are there any rules? The aforementioned car will turn 4 this coming July, and it has logged ~35,000 kilometers. Its brand new price is ~P2.6 M. We tried to trade it in, but the dealer gave an appraisal of only P1.1 M. It's a Nissan Murano, btw. Thanks. :D[/SIZE]

[meledson]

typically, 10% per year from the original purchase price. not the current price.

super mura kung i-trade in, not advisable

[CVT]

I suggest you look at the vehicle prices in the Sunday Bulletin... That will give you a good perspective on the current market price of your vehicle....

For example, when we sold our 5-year+ old van early this year, its price is about 61% of the purchase price. Our 5-year+ old car, sold in the same month, its price is about 69% of its purchase price.

9707:electricf:

[niky]

If it's a common car, you can check average transaction prices and asking prices in the classifieds.

But for a car as uncommon as the Murano... you'll just have to guesstimate... I'd say the proper price will be whatever a buyer will pay for it...

At just 35k kms, I'd say around 2m would be fair... but since it's four years old, 1.6m might be closer to the maximum that secondhand buyers will be willing to pay.

This is how it goes... deduct 10% per year... leaving you at 1.6m... Drop another 200k because it's a Nissan (people don't like paying a lot for Nissans...) then add back another 100k because it's a rare/desirable car... Or deduct another 100k because it's an unusual "hard to maintain" car. :hysterical:

I'd say start asking at 1.8m, and advertise as "negotiable". Try to sell for at least 1.5, but don't be surprised if people will try to drop you to 1.3. Dealerships are usually more familiar with what their cars are worth, and will usually underquote by around 100k-200k when offering trade-in, so if they're offering you 1.1, they're looking at selling it for around 1.3.

[OldSchoolHack]

Prices of 2nd hand cars here in the Philippines is really screwed up. Normally beyond 5 years cars would call for junk yard prices but we have 20+ year old Toyotas here selling for 100K+ pesos.

Since the Murano is a rather rare car (trans - hard to find parts) and it is a Nissan (trans - perception is it is of inferior quality than a Honda-Toyota-Ford. again perception!) then you really cannot expect much.

Unless you find a willing buyer. Good luck.

[jankristopher]

[SIZE=3]Thanks for the inputs! :D
[/SIZE]