What is better?I have just put my M3LR in WBA and nearly fell off my seat - I paid £51k last March and WBA valued it at £30k . . . . NEVER in my life have a I seen a 40% depreciation on a car after just one year. Add to that - it was expensive to buy and it's expensive to insure, it will be a cold day in hell before I buy another Tesla.
1. Have prices drop so in that I lose value on my old vehicle but I would pay less on my next car.
2. Keep prices high so I feel better about my current value car but have to pay a high price again in the future.
I choose option one every time. Even for real estate. Saves money in the long run.
Prices were high due to pandemic and now coming back to normal. The only time option 2 is better is if you don’t plan to buy anything again or want to use it as collateral.
Buying at the high and then selling so soon is definitely not financially wise. Car purchases rarely are. It is unfortunate for those that did and have to sell so soon. But that is more on them than it is on the car company reducing prices.
“During the first year, the average depreciation for new cars is around 30 to 40 per cent, but most lose less and some lose more, according to the Canadian Black Book (CBB).”
Do new cars really depreciate by 30 per cent when you drive them off the lot? - The Globe and Mail
During the first year, the average depreciation for new cars is around 30 to 40 per cent, but most lose less and some lose more
www.theglobeandmail.com
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