I have a Honda 2006 with approx 42,000km it's a dxg and the blue book value is only $14,000 I bought it in 2005 (Oct.) and paid in full $23,500. Why has my car depreciated so much? Txs in advance!
2007-12-05 05:36:27 · 10 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
Ontario, Canada
2007-12-05 05:41:39 · update #1
The majority of the depreciation is taken up front. The value decrease will slow down more and more the longer you keep it....
2007-12-05 11:12:29 · answer #1 · answered by Bramst 3 · 0⤊ 0⤋
Seems like you paid asking price, thus got no money off asking price. Cars retail drops a lot the first Two years ou own a car. Why are you selling a Two year old car?
I looked at KBB, and w/o knowing the cars options, Your car might be only worth abut $11,000
In 2 years you put on 42k miles which is 21k per year. The avg is 12-15k per year so you are selling a high milage car.
2007-12-05 05:50:37 · answer #2 · answered by jon_mac_usa_007 7 · 1⤊ 0⤋
Cars aren't like houses, meaning you can't build-on or improve anything in order to gain equity. The minute you drive the car off of the lot it starts to de-preciate due to use. Most have guidelines for mileage...12-15k per year, anything more then that means the value of it has dropped more. If you have upgraded stereo, wheels, tires, added DVD players, etc...it means nothing on a trade-in because it wasn't stocked with it.
2007-12-05 05:46:33 · answer #3 · answered by REENIE29906 4 · 0⤊ 0⤋
In the States, I've found that as soon as a car leaves the lot it goes down in value. It seems every day it goes down more. I've never gotten an honest answer from any car salesmen but usually it's due to use of the car, wear on the car and things like that.
2007-12-05 05:45:18 · answer #4 · answered by Tammy_Suto 5 · 2⤊ 0⤋
tons of reasons, a woman i work with has a chrysler pacifica that is less than 2 years old, has 19000 miles and is worth less than half of sticker, and btw kbb is always high on there values. your car probably dropped 4k when you got it. the average market price for new honda's tends to be pretty high to, so even though they have a good resale value they do depreciate alot
2007-12-05 06:57:14 · answer #5 · answered by spacemonkey1958 5 · 1⤊ 0⤋
Many reasons.
-The more miles you put on a car, the fewer it has left before it dies.
- There is less demand for old cars than there is for new, therefore they cannot be sold for as much
- Certain models of car develop problems or quirks (such as burning oil) after a while. Older cars are more likely to have these already or develop them soon.
It is not uncommon for a car to be worth half as much as it was new after a couple of years.
2007-12-05 05:46:25 · answer #6 · answered by Evelyn 3 · 0⤊ 0⤋
Just depreciation. my car was purchased for over $18,000.00 in 2004 now only worth about $2500- I still owe more than it is worth. Cars are the worst investment in the world.
2007-12-05 05:45:17 · answer #7 · answered by Shar 3 · 1⤊ 2⤋
THE MILEAGE IS KILLING YOU BECAUSE THE SAME VEHICLE WITH 19,000 MILES IS AROUND $20,000.00 AND THE REST IS JUST AGE.
2007-12-05 06:00:51 · answer #8 · answered by Anonymous · 1⤊ 0⤋
Somebody has to pay for the miles you drive
wouldnt you pay more for one with -o- miles
2007-12-05 05:46:22 · answer #9 · answered by Roy 5 · 0⤊ 2⤋
years and mileage. be thankful that its still worth 14k ;)
2007-12-05 05:47:56 · answer #10 · answered by Anonymous · 0⤊ 0⤋