High depreciation in first 2 years

• f500

  31 Aug 04, 21:31

  If new car prices will depreciate 20% for 1st year, 15% for 2nd year and 8.125% for the balance 8 years according to industry estimate, what's the reason for buying a brand new car and not a 2 year old car?
• manualisbetter

  1 Sep 04, 14:56

  Originally posted by f500:

  If new car prices will depreciate 20% for 1st year, 15% for 2nd year and 8.125% for the balance 8 years according to industry estimate, what's the reason for buying a brand new car and not a 2 year old car?

  It's definitely cheaper to buy a car of 1-2 years.. however, you must bear in mind that you will be the 2nd car owner. If you are selling again within the next 1-2 years, the next owner will be the 3rd and many will avoid buying 3rd or 4th hand car unless they really have no choice... Getting a new car is still better if you can maintain it at least up to the first 3 years. Just my thought
• speedygonzales

  1 Sep 04, 17:12

  an assurance dat at there will b no engine or aircon problem caused by the previous owners..... cos if ur 2nd hand vehicle is problematic, u will nid to spend $$ to repair and rectify....
• edouard_g

  4 Sep 04, 18:18

  Hi,
  
  I'm looking to buy soon too. where to you get these estimates? I see agent sell price 10% dep per year or less on new price, on top of which they pile all the other cost on.
  
  Although if I was selling, i'm sure the figure would be much worse then you outlined, probably paper value plus one stale biscuit.
  
  eD.
  
  
• mushigen

  4 Sep 04, 19:58

  New car depreciates by 20% first year? Where did you get that figure from?
  
  Try buying the Altis/Sunny/whatever at 80% of present price one year later. Chances are it will be selling at a high price. I guess the 20% only applies if you SELL to dealers.
  
  Then there is transfer fee, higher interest rates, and higher wear and tear to think about.