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!

Argentina’s industry is undergoing a major downturn as a result of the global credit crisis . As BMI explains, falling confidence and a lack of access to credit among consumers is likely to keep vehicle sales at as low as 500,000 units, down by nearly 18-20% year-on-year (y-o-y) by end-2009 . Domestic vehicle demand ( venta de autos usados en argentina) contracted by nearly 35% year-on-year (y-o-y) to 66,794 units in the first two months of this year , indicating that the market is heading towards a sharp slowdown. BMI’s revised economic outlook forecasts a 0.1% fall in Argentina’s real GDP growth in 2009, which we expect to be followed by another 0.9% y-o-y drop in 2010. Our forecasts highlight the vulnerability of the Argentine economy to external disturbances and indicate that recovery is likely to be slower than in other Latin American markets. We expect low consumer confidence to pull new vehicle registrations down by nearly 3.5% y-o-y in 2010, after which we foresee robust 4% y-o-y growth in 2011.BMI expects most carmakers to work on reduced capacity this year due to falls in domestic and export demand. Argentine carmakers produced 55.1% fewer vehicles (33,623) in January-February than the same months last year. This has prompted BMI to forecast nearly 27-30% lower production volumes – 438,500 units – by year-end. Having reached a level as low as 431,746 in 2010, we believe that Argentina will climb back to 2008 production levels no sooner than 2013. Probably new car sale ( venta autos nuevos en argentina) will be highly impacted.

Argentina occupies second place, after Brazil, in BMI’s Business Environment Ratings for the industry, with a score of 59.7 points (out of a possible 100). Despite our view of a severe short-term economic risk, the country receives a relatively high score for its competitive landscape due to the high number of industry players seeking to achieve sales growth there. Chinese carmaker Chery Automobile has announced plans to set up a new assembly plant in the Chaco Province, northern Argentina. BMI is hopeful that with a maximum projected production capacity of 100,000 units by 2012, compra venta de autos will sonn recover.  Chery could make its way as one of the leading carmakers in the region.PSA Peugeot Citroën and General Motors (GM) currently dominate, producing 131,791 and 111,911 vehicles in 2008, respectively. On the sales front, GM and Germany’s Volkswagen (VW) hold the leading positions with 96,634 and 125,370 respective units sold last year.