should we be concerned about depreciation?

[n2knee]

guys ive been having problems wanting a car and when i have dat car m afraid of depreciation that even if its set up i wouldnt be able to sell it at the price that i got it. even if its less than a hunred thousand its ok. what is the remedy or this? what is the truth about depreciation?

like everyone says, a car is not a good investment. with the exception of classic cars don't expect it to hold its value in the long term. brand new cars have the highest depreciation rates in the first two years, so if you are concrened about depreciation buy a slightly used one. now if you are using your car for business is another matter. in this scenario you can either make a profit or a loss when the time comes to dispose the car.

someone had mentioned that the usage (mileage or km) dictates the value of the car. that is true. and it is also true that the demand dictates the value of the vehicle. it is called the law of supply and demand. one good example about this is the MKIV Supra. a ten year old supra in good condition still commands top dollar. it was $50k brand new. 1994-1998 TT Supra (stock and unmolested) in good condition is still worth $35k to $45 today. even though the insurance companies tend to disagree (it is 50% lesser in their appraisal software), there are still people who are willing to pay top dollar for a car such as the TT Supra, because it is rare.

finally, and i'd like to emphasize this one. any car is only worth what someone is willing to pay for it, so use the car value guides on the internet or book as reference only, but those are not absolute values. if someone is willing to pay more for a car, which has a lesser market value per the various reference guides then the amount of money exchanged is the true value of the vehicle.