Cars & Vehicles

Do wrecks depreciate the value of a new car?

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2013-06-01 18:34:56
2013-06-01 18:34:56

Absolutely

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New cars depreciate a lot faster than used vehicles will. It is projected that a car will depreciate about 20% in the first two years, and 15% for the next five years.

It depends on the condition of the car and how often it has been used and how well it has been taken care of, If it is basically new it shouldnt lose much of it's value

Yes, there have been a few significant train wrecks in New York

Many have suggested that once a car has been driven off the dealership's lot, it loses 15-20% of its value. During the second year, it loses another 15-20% of the remaining value. Keep in mind that the car does not lose 15-20% of the total value during the second year, but rather off the remaining value.

Use nationwide, they are great, and have fantastic customer service. They have you insured for everything. Car wrecks, car crashes, even tickets. They are my favorite.

Appreciation and depreciation both deal with asset value over time. Some assets, such as real estate, bonds, and homes gain value as time goes on. These assets are said to appreciate. Other assets, such as vehicles, manufacturing plants, and office equipment lose value over time (depreciate). Appreciation/depreciation as a verb is the process of increasing value. For instance, a piece of real estate might appreciate at 5% per year and a car might depreciate 10% a year. De/Appreciation do NOT have to be linear. For instance, the moment you drive a new car off the lot, it depreciates a considerable amount (say 10% of its value). The next year, though, the car might only depreciate 5%. How one determines the rate of de/appreciation depends on your accounting rules. For tax reasons, many companies have to abide by strict depreciation laws (For instance, it would be unreasonable to depreciate a factory at 90% of it's value in one year because it would effects the company's profits and thus the taxes that company pays). For most consumers, de/appreciation is based on the market value of the asset. Back to the car example: the moment a new car is driven off the lot, it loses a lot of its value because it is then consider a "used" car, so people won't pay as much for it.

50-180 USD or so Whoever posted this value might want to recheck. They got for around $300 new, and remember guns do not depreciate in value!

Absolutely not. In fact, it may be one of the worst investments you can make. As it is that cars can only depreciate, the worst thing you can do is drive a new one off the lot, where the thing will depreciate a few thousand dollars before you even get it home.

Typically a brand new car depreciates much much faster than a second hand or older car but basically cars depreciate because the older they are, the more problems you will be facing. For instance a 2 year old car's transmission should be fine but a 10 year old car's may start to have problems.

There are a few benefits of getting a car from a used auto dealer. One is price, as used cars are almost always cheaper than new vehicles. Another is the many certified pre-owned programs for used vehicles. Also, used cars depreciate slower in value than new vehicles.

Just as you normally would, the only problem will be that you will owe more money then you will get. To prevent this from happening, research cars before you buy them to see which retain their value the best. Another option is to buy used cars, because a car typically loses the most value in years 1-3, so if you were to buy a car that is three years it will depreciate at rate slower than a brand new car. Henry

Get a new car. == If someone hit your car you will be paid the actual cash value of the car. If you totaled the car and had collision coverage you will be paid actual cash value, too.

The value of a used car depends on what people are prepaid to pay for it. The value of a used car is normally 50 percent less than a new one. You can find this information at car trader.

Yes, a new car immediately loses value as soon you drive it off the showroom floor. In the first year that you own a new car it will lose up to 20 percent of its value, and by the fifth year of ownership, it will be depreciated by over 65 percent. It's a horrible purchase to buy a new car.

The main advantage of purchasing a used car is the price. Used cars go for much less than a new vehicle even if it is a newer model Cars and trucks depreciate as soon as they leave the lot. Often one can find a good used car with low mileage which would be almost like buying a new car.

It varies from state to state. Where I live (Washington State) you pay sales tax on the difference in value between the new car and the trade-in vehicle. Example: New car purchase price $25,000, trade-in car value $10,000; tax is paid on $15,000. It varies from state to state. Where I live (Washington State) you pay sales tax on the difference in value between the new car and the trade-in vehicle. Example: New car purchase price $25,000, trade-in car value $10,000; tax is paid on $15,000.

Once you buy a car, the value of the car decreases. Miles and miles and wear and tear all decrease the value of the car. New cars have 0 miles and have way more value.

There is nothing worse then over paying for a car so it is always smart to check the market value for any new or used car. The blue book has been used for many years to determine the market value of a car.

This depends on the make...some manufacturers hold their value more than others. A fact, however, is that a new car suffers its greatest drop in value the minute it's driven off the lot. Why? It's not "new" anymore.

It depends upon the value of the car and your likeihood of purchasing a new vehicle and the terms you'd incur, plus maybe whether you like your car. Find out the value of your car and whether you're comfortable with the value versus the buyout amount.

Due to the fact that Toyota Corollas tend to depreciate in value, buyers often opt to buy a used model because it offers many of the options of a new model with a lesser cost.


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