Car Depreciation

[Jesterarts]

Hey guys.

Just wondering at what rate cars are depreciating at currently?

For example,

A VZ SSZ ute can be picked up for say 28,000 with decent km and in good nik.

How much value would this car loose over the next 2 years?

Obvviously I understand that economics and fuel prices are factors that influence this rate, but I'm just after a rough rough estiamte.

What are peoples opinions?

How are v8's in general depreciating?

[Reaper]

Shitloads . VZ has probably taken it's biggest hit though. I'd say it will be mid-high teens for a very good one. Maybe less if you trade it at a dealer.

Reaper

[mrss6ltr]

cars roughly loose 20% of the price as soon as you drive it out of the car yard. so if you bought the car for $28000 take 20% off and your car is worth roughly $22000 - $23000.

[Jesterarts]

So you wouls say that roughly they are depreciating 15% a year?

This pleases me...

Mainly on account of I'm planning on buying one in 2 years...

[Travy]

before xmas you could buy a VE SS ute for 30K brand new.. makes 28K for a VZ SSV ute seem a rip off lol.

[Jesterarts]

This is true...

HEY.... maybe with some luck I will be able to buy a VE :P lol

[Fekason]

A good starting point for depreciation is the minimum salary sacrifice buy out allowed by the tax office.

One year old 65%

Two years old 55%

Three years old 45%

Four years old 35%

Five years old 25%

That indicates a huge loss early, followed by a more steady drop as time goes by. However, when new prices are being heavily discounted as they were just before Christmas, then used prices also take a hit. After all, it is all relative.

Just passed on a 2004 VYII V6 manual Executive. Used car dealer paid $11,500 for it. While that looks low based on RRP (about $37K drive away), I only paid $23,295.47 ex GST drive away for it brand new. Figures above say $9K, which is about the Redbook figure. I expect I got higher because manuals are more in demand than auto's.

IMHO, Australian cars do not depreciate much different to imported cars based on the price most people pay. For Commodore that is fleet prices, not RRP. I always buy at market/model lows and achieve prices much below RRP - VSII at $7K+ off, VYII at $11K+ off and VE MY09 at $14K+ off. That takes a lot of the depreciation pain away. But you have to avoid emotional buying decisions.

[Jesterarts]

Interesting... very informative...

Thanks!