[VIC] Car Depreciation

[Something_Wrong]

I seem to have bought my last 3 new cars in December and they are usually Feb - March built the following year, That way when i sell it it is still only 3yrs old when you tell them the yr model.

Example

2/2008 Hilux sold in Feb 2011, So the car is 3yrs old (2008 - 2009- 2010 - 2011)

12/2007 Hilux sold in Feb 2011 the car is only 2months older but sound like 4yrs as people count (2007 - 2008 - 2009- 2010 - 2011)

Its probably just my way of thinking but most people when i explain why i don't buy a car with a build plate Nov / Dec understand and then agree they too think that way.

There is advantages to buying a End of Financial run out model as well,

 

[GTS-Replica]

Stuff all re sale value.

 

[Verynice]

also some cars hold their value much much better then others.

prime example is v6 manual utes.
most people still ask 6-10k for them
where as the sedans are much much lower (sorta 2-3k)

utes are still higher because they are a commercial utility vehicle, people will use them for their job and can claim some money back on tax

 

[dumpedvs]

utes are still higher because they are a commercial utility vehicle, people will use them for their job and can claim some money back on tax

And their would have been more sedans made then utes, the more type of car the easier it is to get. Which usually means cheaper prices.
Going by my knowledge anyway.

 

[the_trademarc]

From a financial point of view- depreciation is the amount of 'value' consumed during the useful life of an asset.

So it really is very difficult to consider a car purchase based on depreciation, because as mentioned, the factors involved in purchasing a car can alter the value:

--> Km's, Colour, Transmission, Service History, Age, the like, will all affect the value.

The best thing to do is use some of the Car valuation tools available (Red Book is a good start), they will give you a rough guide as to what you should pay.

For what its worth, 22k for an 09 Omega is a bit much in my opinion. You could get an 08 SV6 for that money.

 

[Bazza]

Yes you will have barganing power with the calendar year about to click over. The car will be another year older so the seller should be motivated to deal. The longer the seller keeps the car the less in value it is worth. Classic cars maybe not so much , but in the case of a 2009 Omega I would say you have a leg to stand on. Good Luck.

 

[STEEV888]

i dont remember if i saw it here or in the paper or somewhere but commodores (behind falcons) are the highest depreciating car to buy losing $130 a week off its value over the first 5 years of its life. falcoms were $140 aweek.
they only did a 5 year thing.

 

[the_trademarc]

i dont remember if i saw it here or in the paper or somewhere but commodores (behind falcons) are the highest depreciating car to buy losing $130 a week off its value over the first 5 years of its life. falcoms were $140 aweek.
they only did a 5 year thing.

That sounds about right- the plethora of Commodores and Falcons on the market (Fleet, etc) means prices will inevitably be lower to get a sale.
I remember on Top Gear they were discussing that an Aston Martin DB9 loses half its value in the first two years!

 

[aaronevolution]

That sounds about right- the plethora of Commodores and Falcons on the market (Fleet, etc) means prices will inevitably be lower to get a sale.
I remember on Top Gear they were discussing that an Aston Martin DB9 loses half its value in the first two years!

This months wheels magazine has an article about the Ferrari 599 losing heaps of its value aswell.

 

[Not_An_Abba_Fan]

When people get their head around the fact that a car can't depreciate unless you are using it to generate income, the better off the industry will be.

Cars will always sell for less than they are bought for (collectables excluded), it's the same with all commodities. People need to stop thinking a car is an asset.