Why are used cars having same depreciation as brand new

[blmg]

Used cars are at the same depreciation as new cars because the used car dealers know that used car buyers are looking for higher loan quantum than new cars, and the used car cost is lower than that of a new car. This is also the reason why I believe that the profit margins of used car dealers are decent.

 

I was deciding to buy a new or used car this year but couldn't find any reasonably priced used car as most 7-9 year old Jap brand 1.6l car was asking $10k or more depreciation per yeay, same as new cars.

[Char]

Who say new and used with same depreciation? I think used car were sold at higher depreciation than new one base on most listing at sgCarMart....this is uniquely Singapore!

[Wt_know]

i said it before and i said it again

that's because there is a death certificate for the car

in any country anyone can buy a laopok 6-7 years old car and drive until it chui

uniquely spore ... can only drive for 3-4 years or else kena fcked another $50k to buy a new life

so, any used car price must benchmark new car price

used car must pay higher depreciation because of the lower downpayment and lower quantum of absolute price

 

Who say new and used with same depreciation? I think used car were sold at higher depreciation than new one base on most listing at sgCarMart....this is uniquely Singapore!

 

Edited June 3, 2017 by Wt_know

[Sdf4786k]

So if my current model no longer in production, new version model depreciation is 1.8 times my current pre-own car.

 

Can I say I have gotten a good deal?

The selling price of current version is 1.5 times of my current version when it was new.

if u referring to depreciation, there is multiple way to count.

 

What is consider good value maybe a huge burden and liability to others.

 

There is no simple yes and no once you go into details of what is 1.5 times and what us 1.8 times.

 

You typically calculating it like apple and orange now. Old vs new. NPV and all that wonderful stuff that a finance person may want to kill us  when we response to this.

 

Given a fact that the car cost 130,000 when new.

 

You use 2 year. trade in. Dealer tells you You give me your car same model same specs, you drive out new car. Currently you only need to pay dealer of new car 20 k and you drive out new car.

 

At current today price, same car is going for 100,000.

 

You going to tell me because you pay 20K, your depreciation is 10 K a year ?

[Showster]

if u referring to depreciation, there is multiple way to count.

 

What is consider good value maybe a huge burden and liability to others.

 

There is no simple yes and no once you go into details of what is 1.5 times and what us 1.8 times.

 

You typically calculating it like apple and orange now. Old vs new. NPV and all that wonderful stuff that a finance person may want to kill us when we response to this.

 

Given a fact that the car cost 130,000 when new.

 

You use 2 year. trade in. Dealer tells you You give me your car same model same specs, you drive out new car. Currently you only need to pay dealer of new car 20 k and you drive out new car.

 

At current today price, same car is going for 100,000.

 

You going to tell me because you pay 20K, your depreciation is 10 K a year ?

If 20k is considered the payment for the past two years of use, then yes. Total 150k drive 12 years?

 

With Parf rebate at the end, the depreciation for next 10 years is actually under 12k per year?

 

Really can drive two years pay 20K change new car?

 

One thing that I feel is buffering any COE price drop is that the peak COE buyers between 2013 and 2015 will come in to buy new cars to swop COE depreciation.

Edited June 3, 2017 by Showster

[Sdf4786k]

If 20k is considered the payment for the past two years of use, then yes. Total 150k drive 12 years?

 

With Parf rebate at the end, the depreciation for next 10 years is actually under 12k per year?

 

Really can drive two years pay 20K change new car?

 

One thing that I feel is buffering any COE price drop is that the peak COE buyers between 2013 and 2015 will come in to buy new cars to swop COE depreciation.

 

One finance person calculate as 130 K for car purchase 2 years back minus same model same car model now at 100 K. so 30K gone.

 

Then tambah 20K get new car, equal to 80K.

 

So depreciate  is 50K gone for current car on the first part of the calculation.

 

Then have to do the breakdown of the new car of 100K.

 

Then do breakdown of the COE and scrap.

 

At the end, I realize, dont waste time, If dumb enough to buy when COE is high, just LL suck thumb for the owner.

 

you want good value for money. Try this at BM when buying an Altis

 

 

1798

Edited June 4, 2017 by Sdf4786k

[Mkl22]

Recently during lunch overheard a group of 40+ guys in office wear talking at the table next to mine. One guy said he was looking at PI cars because "AD cars 40% downpayment, how to afford?". I guess PI can offer undertable loans with lower downpayment.

 

There are many of these people around who bought big cars during the SJ* period for cheap prices with 10 year 100% loan, now struggling to work out their finances to afford their next car...

My take is if cannot afford a prudent 40% down payment, then they seriously cannot afford to own a car, period.

[Wt_know]

My take is if cannot afford a prudent 40% down payment, then they seriously cannot afford to own a car, period.

give chance la

in my office carpark got many soup up civic, lancer and vezel leh ... top 3 most love cars

Edited June 4, 2017 by Wt_know

[flashbang]

if u referring to depreciation, there is multiple way to count.

 

What is consider good value maybe a huge burden and liability to others.

 

There is no simple yes and no once you go into details of what is 1.5 times and what us 1.8 times.

 

You typically calculating it like apple and orange now. Old vs new. NPV and all that wonderful stuff that a finance person may want to kill us  when we response to this.

 

Given a fact that the car cost 130,000 when new.

 

You use 2 year. trade in. Dealer tells you You give me your car same model same specs, you drive out new car. Currently you only need to pay dealer of new car 20 k and you drive out new car.

 

At current today price, same car is going for 100,000.

 

You going to tell me because you pay 20K, your depreciation is 10 K a year ?

 

You paid 130k when new, trade in value is actually 80k due to new car costing 100k and you need to top up 20k cash.

 

Means you drove 2 years and lost 50k. Now you switch to 100k car. End up over 12 years your depreciation is 12.5k.

 

If you keep your 130k car, depreciation is 13k.

 

So roughly you paying extra 5k over 10 years if you keep your old car. If got such good deal, can consider changing! Pay a bit more to switch out to a new car again.

[Atonchia]

if u referring to depreciation, there is multiple way to count.

 

What is consider good value maybe a huge burden and liability to others.

 

There is no simple yes and no once you go into details of what is 1.5 times and what us 1.8 times.

 

You typically calculating it like apple and orange now. Old vs new. NPV and all that wonderful stuff that a finance person may want to kill us when we response to this.

 

Given a fact that the car cost 130,000 when new.

 

You use 2 year. trade in. Dealer tells you You give me your car same model same specs, you drive out new car. Currently you only need to pay dealer of new car 20 k and you drive out new car.

 

At current today price, same car is going for 100,000.

 

You going to tell me because you pay 20K, your depreciation is 10 K a year ?

Huh?

Depreciation only has one calculation right.

 

I am comparing same model but newer release version.

 

Depreciation is $14.5k, newer version is $25k, so the new version depreciation is 1.8x current dep.

 

Old version launch price was $180k, New Version launch price is $280k. So about 1.5x.

 

Because no same version comparison

The old version when launch depreciation was $17.5k, so depreciation when I bought was $14.5k. I thought it was a good deal as

many dealers were selling at $17k depreciation of the same resale model.

Edited June 4, 2017 by Atonchia

[Char]

Many people always say that the moment your car leave the show room immediately depreciate 30% ? To be fair depreciated part is excluded COE value .

[Showster]

Many people always say that the moment your car leave the show room immediately depreciate 30% ? To be fair depreciated part is excluded COE value .

That is true last time when old cars cost so much lower.

 

Many one year old cars today cost nearly the same as new cars, dunno is it due to loan restrictions or COE prices.

Edited June 4, 2017 by Showster

[Raychay]

due to profiteering from 2nd hand car dealers

[Wt_know]

due to profiteering from 2nd hand car dealers

the more time the car resell, the more depreciation went into dealer margin ... lol

[Jq1988]

if worry about depreciation, take public transport. It wouldn't bother you anymore...if go extra cash buy new house and invest...surely appreciate very soon...

Edited June 4, 2017 by Jq1988

[SGCarPrices]

Some used cars are sold at higher prices.

 

[Wt_know]

Some used cars are sold at higher prices.

willing seller willing buyer

no bait fish also kena catch ...

[ziege]

But I see 1 yr old cars on sgcarmrt by direct seller also same price or higher than dealer man