Depreciation after a year
#1
Junior Member
Thread Starter
Depreciation after a year
I'm in a weird predicament here and might need to wait another year to give my order the green light, I am wondering what the depreciation would be like if I put 7k miles on the car in a year, assuming the MSRP was 90, am I going to lose 20k?
There is a chance id need to sell it after a year, thoughts?
There is a chance id need to sell it after a year, thoughts?
#2
I'm in a weird predicament here and might need to wait another year to give my order the green light, I am wondering what the depreciation would be like if I put 7k miles on the car in a year, assuming the MSRP was 90, am I going to lose 20k?
There is a chance id need to sell it after a year, thoughts?
There is a chance id need to sell it after a year, thoughts?
#5
#7
Member
I'm in a weird predicament here and might need to wait another year to give my order the green light, I am wondering what the depreciation would be like if I put 7k miles on the car in a year, assuming the MSRP was 90, am I going to lose 20k?
There is a chance id need to sell it after a year, thoughts?
There is a chance id need to sell it after a year, thoughts?
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#8
that kinda sucks - one reason why i like BMW is they dont do this the changes are very minimal
#10
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#11
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Join Date: Aug 2009
Location: Miami, Florida
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2015 C63S
Also, there are options I didn't choose this time which I regret and wont be missing next time I purchase the car. I have OCD with the buttons, each time I see a blank space where a functioning button is supposed to be it aggravates me.
I have to be honest, I haven't bought a BMW because of the interior, it doesn't suit my taste. Mercedes beats BMW on the interiors every time with the equivalent model. BMW's exterior is slightly more appealing than Mercedes, it is more sporty.
Each to their own.
Assuming the car depreciates $20k a year by the second year the value would be around $43,700.00 and I would be owing around $51,000.00. To turn in the car I would to fork out $7k in the best case scenario, it could be even more. I should assume the worse case scenario, it would really be around $10k.
#13
That's great for the dealership as they get to "sell" the car twice.
Leasing is no better than buying to avoid depreciation. The single largest component of a lease payment is the expected depreciation during the lease period.
Lessees pay for depreciation, they don't avoid it in any way.
#14
MBWorld Fanatic!
I totally agree with you. The largest depreciation comes at the front end of the lease/purchase in the first two years.
#15
Super Member
Well 2 years would be ideal, it is nice to change cars in such a short time, specially due to the changes they make.
Also, there are options I didn't choose this time which I regret and wont be missing next time I purchase the car. I have OCD with the buttons, each time I see a blank space where a functioning button is supposed to be it aggravates me.
I have to be honest, I haven't bought a BMW because of the interior, it doesn't suit my taste. Mercedes beats BMW on the interiors every time with the equivalent model. BMW's exterior is slightly more appealing than Mercedes, it is more sporty.
Each to their own.
Assuming the car depreciates $20k a year by the second year the value would be around $43,700.00 and I would be owing around $51,000.00. To turn in the car I would to fork out $7k in the best case scenario, it could be even more. I should assume the worse case scenario, it would really be around $10k.
Also, there are options I didn't choose this time which I regret and wont be missing next time I purchase the car. I have OCD with the buttons, each time I see a blank space where a functioning button is supposed to be it aggravates me.
I have to be honest, I haven't bought a BMW because of the interior, it doesn't suit my taste. Mercedes beats BMW on the interiors every time with the equivalent model. BMW's exterior is slightly more appealing than Mercedes, it is more sporty.
Each to their own.
Assuming the car depreciates $20k a year by the second year the value would be around $43,700.00 and I would be owing around $51,000.00. To turn in the car I would to fork out $7k in the best case scenario, it could be even more. I should assume the worse case scenario, it would really be around $10k.
#16
MBWorld Fanatic!
Some of course will minimize this depreciation by getting tax deduction through business. If not going that route, buying will still save more money in the long run compared to leasing.
#18
Anything prior to the FL is still considered PFL, which will have little to no substantial changes.
#19
MBWorld Fanatic!
If depreciation is of a concern to you, then you are in the wrong market. All high end cars have huge depreciation because as a percentage, the higher cost makes them huge. A 10% depreciation on a $100K car is $10K, on a $30K car, its only $3k.
#20
MBWorld Fanatic!