If you travel to south america, you will probably  find used cars at very cheap  prices. Do you like a new car but think that it could be too expensive?  Well, there is a simple formula for predicting what a used vehicle will be worth three years down the road .

It is well known that cars, trucks, SUVs and crossovers lose a minimum of 24% of their value after first year . This deduction constitutes the basis for the Manufacturer Suggested Retail .

To be more clear , a used car costing $20,000 would be worth $15,200 after one year.  This is not a dating sight, but it’s actually the number one resource for predicting a car’s residual value when it goes on sale. This data is crucial when setting the future leasing rates

  Second, from the basic 24% drop in value, you can start deducting 6% a year. A decent used car, introduced with the price of $20,000, would have an estimated value breaking down this way:

  • After 12 months: $15,200
  • After 24 months: $14,288
  • After 36 months: $13,430
  • After 48 months: $12,624.

 Of course, this formula will not work 100% of the time because some cars and trucks have residual values that drop like stones after 12 months. Case in point would be the Chevy HHR.

  • 2009 Chevrolet HHR LT – $20,729
  • 2008 Chevrolet HHR LT – $11,225 dealer price, according to Edmunds.com.

That’s a drop of 46% in one year. Wait two years and you’re looking at a $10,551 vehicle. Proving pretty much if you want a Chevy HHR, buy a used one. You are going to save a ton of money.

Its a good practice  to buy a used car, specially in latin america. Used cars usually can be found at very competitive prices . If you are looking for used car sale ( or venta de autos usados en Argentina) you better have the used car inspected before commiting to the purchase.  Same advise works for the 4×4 sale or ” venta de 4×4 “. Use this basic formula to help you get started on what the value of a used car should be. It will save you from spending too much on your next used car or it will help you put aside the right amount if you’re a good saver!

Tagged with: • • • •

Filed under: Get Out Of A Ticket

Like this post? Subscribe to my RSS feed and get loads more!