Quote:
Originally Posted by LogicalApex
And new car depreciation can be a hard one to pin down as it is reflected off MSRP, but can't take into account negotiation and incentives. So the depreciation hit might not be as much as it seems.
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An excellent point. I did an arithmatic exercise. My car has an MSRP of approximately $73K. I assumed for this exercise that it had depreciated to $40K. That translated into 45% depreciation.
I then applied the same $40K price to my actual cost of approximately $63K and the depreciation came out to 37%.
The amounts are made up but the concept is sound. You are entirely correct that the depreciation calculated against MSRP is deceiving.