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How Much Does Your Car Cost After Five Years?
Author : ALEN LEW
Let us face the fact that people are insatiable. Even if we tend to buy the most expensive stuff, we would still want a new one a few years after. Why? Because it is already used, it is already out of trend, the style has faced out, and the new ones are really better. So after buying, people will automatically sell it again a few years later. But of course, we want a good trade value for our old stuffs. Though old and used, we surely had bought it in a good price, so we also expect a better deal.
In the world of cars, we already know that its value really depreciates. Some has a fair enough value, while others have really way too low trade value. High-end sports cars and SUVs like the Audi A5 or BMW X5 are our segment leaders because it still retains up to 40% of their original price when sold after five years of ownership. So aside from the fact that these cars are fun to drive, you are more assured that you’ll be able to get back your money’s value after experiencing all the amenities of this vehicle.
On the other hand, cars whose values lose quickly are for example; the Kia Sedona, Lincoln Town, or those made by manufacturers in dire financial straits like the Chrysler Sebring, and Dodge Grand Caravan. Actually, we have a common knowledge that new cars lose up to 20% of their value the moment they were driven off. And after five years, they will probably depreciate by up to 65%. But the latter four are different, because these cars lose more than 67% of their value in just two years and 82% after five years.
In this time of crisis, auto sales were down by 23% compared to year 2008. Expert says that consumers are now looking for purchases that will last, but the problem is, the cars with the lesser price when bought, has the worst resale value ever.
Author's Resource Box
Drive safely and save money on your cars or automotives by following many of the simple to follow tips mentioned in many of the articles this motoring master author. Been motoring for more than a decade already, the author has gained enough experience to consider himself as an expert.
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Tags: automotive, car
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Submitted : 2009-12-03 Word Count : 382 Popularity: 283 Times Viewed: 14
