Question on how much a used car is worth

[Hllow84]

Hi guys, have a question in determining if a used car is worth it's price. The calculation that come straight out of my head now when calculating a used car value is:

 

(New car price - current COE value - OMV value) / 10 * number of years left in COE.

 

The result from that calculation will then be compared to the used car selling price and the difference will then be compared to the current COE price (pro rate to the respective year left), and if the value is less than the current COE price I will think it is worth it.

 

Is that correct?

 

Also I heard that a car depreciate much faster in the first few years, which means that my concept above is totally wrong, if that's the case, how should I determine if a used car is worth it? Thanks!

[Melvyn]

http://zitseng.com/home/cars/depreciation

 

Site is not mine. Happened to chance upon this. Hope it helped. Only thing I noticed is that your calculations assume that OMV depreciates linearly thru the 10 years which is not the case, even when driven till year 10 there's still residual value I think.

[Unidentified]

go to any 2nd hand dealer and slash price by 5k.

if they dun want,just walk off.

they have standard practise to markup a min of 8-10k for each trade in car.