How does depreciation affect the type of car that you purchase?
Marquita asked:
You have a choice of buying a luxury car or a standard model for the same price. How will depreciation affect both types of cars? If you are interested in a car that has the least amount of depreciation, which one would you purchase, the standard or the deluxe? How does depreciation affect the type of car that you purchase?
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on Tuesday, August 31st, 2010 at 7:01 pm and is filed under Buying & Selling.
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You have a choice of buying a luxury car or a standard model for the same price. How will depreciation affect both types of cars? If you are interested in a car that has the least amount of depreciation, which one would you purchase, the standard or the deluxe? How does depreciation affect the type of car that you purchase?
September 1st, 2010 at 2:43 am
Depreciation is usually figured as a percent of the $$$ value of the car, so logic would say that the more the car costs/is worth, the more it will depreciate. Depreciation doesn’t affect the car you buy until you try to sell it. If you don’t plan on selling it for more then scrap, you’ll drive it ’til it falls apart, then it doesn’t enter into the calculation. rick29148