Is the brand new automobile odor wafting down the road from the native automobile supplier, tempting you to commerce in your previous mannequin and buy a brand new one? That intoxicating aroma is powerfully tempting – however earlier than you succumb, take into consideration the prices related to a brand new automobile and whether or not a barely used automobile could also be higher in your finances.
Except for value, listed below are different monetary considerations to judge:
- Depreciation – The “new automobile premium” is the rapid depreciation of a brand new automobile as quickly as it’s pushed off the lot – typically round 10% -15% of the associated fee. In essence, that first section of depreciation is the distinction between wholesale and retail price of a automobile. You’re paying for the privilege of being the primary to drive it.
The standard depreciation price is 20% over the complete first 12 months and 15% of remaining worth in succeeding years, however totally different fashions depreciate at totally different charges. On-line depreciation calculators can assist you identify the dif…