Out of Control
Join Date: Jan 2010
location: Central NJ
Thanked 646 Times in 499 Posts
I realize now that chart is very confusing. Sorry. But here is ultimately how I thought this information might be used. Suppose you had $28,000 to buy a car and depreciation was a big deal to you. Let’s also assume you have a choice of two cars, a brand new V6 Accord EXL or a 5 year old Lexus GS430 with 60,000 miles. You can buy either for $28,000. Which one would depreciate less?
At first I thought the Lexus would depreciate less because it is five years old and has already lost 50+% of its value. But based on what I thought my numbers above tell me, it seems they will depreciate the same amount, roughly 15% per year. So next year, both cars would be worth about $23,800. The fact that the Lexus is five years old doesn’t mean its rate of depreciation will decrease.
Anyway, that was my thought. Flame away!
2012 Accord Coupe EX-L w/Nav, V6-6MT
2007 Accord Sedan EX-L w/Nav, V6-6MT (sold)