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  1. Join Date
    Dec 2005
    Posts
    617
    #21
    Quote Originally Posted by n2knee View Post
    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.
    sir n2knee, that's so very true... this i believe is what we call "FMV" Fair Market Value, a value by which the buyer and the seller agrees to do business based on reasonable disclosure and without any sort of undue influence..

  2. Join Date
    Jun 2006
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    1,046
    #22
    OT,
    kapatid slamtaz, reading your posts in this thread and your use of some accounting terms gives me the impression that you have a background in business (finance/accounting/economics). you have made good posts about the topic.

  3. Join Date
    Jan 2004
    Posts
    2,329
    #23
    i agree with all the posts in this thread.

    to the thread starter, you don't have to worry about the depreciation. by the way, what are you getting, a brand-new or a used one? one thing i saw is that
    a brand-new vehicle depreciates a) 25% of its value once you driven it out of the dealership b) the vehicle will depreciate for about 5% yearly until it reaches its 3rd year of ownership c) the value of your car would have depreciated 60% of its actual cost of acquisition regardless of its age.

    of course, appearance and condition would contribute greatly on the resale value. but considering the your car is well-kept until such time you decide to sell it, chances are your car will fetch a very reasonable price.

    i doubt it though. i figure that, if your car has served you well- it will be very hard for you to sell it (perhaps, im a sentimental person).

  4. Join Date
    Sep 2006
    Posts
    593
    #24
    even a new car can lose upto 20% of its value the moment it leaves the dealer's lot. no way around it, cars will always depreciate. there are those exceptions like the exotic cars but heck, even if you buy a ferrari you cant expect to sell it at the price you got it unless its one of those collectibles that you keep in the garage for 10+ years before selling.

    personally, if you plan to own the car for more than 5 years then depreciation is not a factor anymore. even if you keep the amount you paid for the car in cash, over 5 years you still lose to inflation.

  5. Join Date
    Dec 2005
    Posts
    52
    #25
    Quote Originally Posted by Juzam Djinn View Post
    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?

    Depreciation can work into your advantage depending on the how you earn your income...if you dont have any business, acquiring a car either new or
    2nd hand would mean that its a liability (an expense) on your side....

    If you are have a business practice in (any form such as "professional", corporation, sole proprietorship, etc) acquiring a car (either new or 2nd hand) means it is an investment (or asset) on which depreciation can be applied and use into your advantage during the declared life span of the car.

    Like in my case (im in a professional practice), I acquired a 2nd hand car for 180K (with life span of 3 years) in my balance sheet. So for 3 years, i can use the depreciation amount of around 60K every year as legitimate expense against my income tax...after 3 years, i can sell the car even for 50K and it will be considered as income since the depreciation value was used as legitinate expense for 3 years.

  6. Join Date
    Aug 2006
    Posts
    26
    #26
    There is no way out of depreciation. PC, laptop, guns, toys, apparels, tennis racquets, gas range, microwave oven... almost everything in this world. The moment you acquire it, it depreciates immediately. Ang binata at dalaga nga pag tumanda, nag dedepreciate na ang value sasakyan pa. He he he...

  7. Join Date
    Oct 2006
    Posts
    142
    #27
    Quote Originally Posted by Chip View Post
    If the car is something you really fancy, like an old classic that you don't see yourself letting go of in the near future, then go for it. passion will beat depreciation hehe

    If you are looking for an investment, forget it. Nobody can predict which cars will hold their value over time. Forget all the sales talk people say about cars being an investment, they are not. They are a liability.
    I like this! This is one good comment.... Nice statement dude.

  8. Join Date
    Mar 2005
    Posts
    8,837
    #28
    Quote Originally Posted by WiRK View Post
    There is no way out of depreciation. PC, laptop, guns, toys, apparels, tennis racquets, gas range, microwave oven... almost everything in this world. The moment you acquire it, it depreciates immediately. Ang binata at dalaga nga pag tumanda, nag dedepreciate na ang value sasakyan pa. He he he...

    there is a way out of depreciation. kung puro monetary computations wala talaga, luge hehehe. that's the problem if a person is to MBA-ish. compute compute, gross-expense = net, original value-fair market value = net and all that stuff.

    in fact, if all people in the world compute like this, then dapat lang alam ng lahat ang monetary net worth ng buong mundo. that is not the case d'ba? who really knows how much money is flowing around, greater than trillions? maybe ... but who really knows? from our caveman days to what we have achieved ngaun. That alone explains na hindi inevitable ang depreciation. if all things (cars, bldgs, nations) had lost value, as defined by depreciation, then naturally, mauubos/liliit ang halaga ng pera.

    pero hindi ganun ang mundo eh, in fact, expanding pa nga hehehe


    the thinking of some car owners kasi: they take for granted the use of the car, the hidden benefits that it gives for years and years of usage. kaya ang nangyari, parang luge ang dating. tinitignan lang magkano bili tapos magkano nabenta. and therefore depreciated na, expense na or loss na.

    you know what separates a charismatic businessman from a by the book businessman, the former gives value to everything not only money. for example, if a charismatic businessman praises/commends an employee, that is an investment. if a charismatic businessman drives into a golf-course or a business club with a corolla, pajero, fortuner, bmw, that is an investment. bec. that creates an opportunity to make returns.

    kahit na hindi ka businessman, you use your car for personal means lang, it still gives value to you as a person. and with that face value, it creates an opportunity for you.

  9. Join Date
    Jan 2006
    Posts
    12,190
    #29
    If I replaced my cars every few years, I'd be concerned about depreciation. But, I tend to keep my cars until they quit running. So depreciation isn't a big concern.

    Take our 1995 Ford Contour SE (V6). Supposedly, it's a lemon. But ours have been relatively problem-free even though it's past its 12th year.

    It's been paid off since 1999. Do I really want to replace a car that's old but running fine, no costs except for regular maintenance/insurance, and lower yearly registration fees with a newer flashier one that would cost me ~$500/mo for 4-5 years plus higher insurance and registration costs?

    Maybe if I was still single and renting an apartment. But, I have a family to feed and a house (which is an investment itself) to pay for. Besides, I'd be lucky to get $500 for the Contour as a trade in. I think it's a wiser option to get maximum use out of the Contour even though the urge to get a new car is very high. I suppose I could also consider every additional month we keep the Contour is ~$500 saved in new car payments.

    My 2 cents....

  10. Join Date
    Oct 2002
    Posts
    4,387
    #30
    kung worry mo ung depreciation, benta mo na lang kagad. parang buy n sell, bili-gamit-benta. kasi ako pag bumili ako ng isang bagay for keeps talaga o di kaya naman bebenta ko pag talagang luma na, ung tipong na sulit mo na.

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should we be concerned about depreciation?