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How do I determine a Silverado's annual depreciation rate?

Rate of Depreciation
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How do I determine a Silverado's annual depreciation rate?

Postby ShiningSilver [OP] » Sep 09 2010, 3:25am

Hi, me and my dad are planning on selling his Chevy Silverado 2001 after restoration of some faulty parts. Anyone know the formula for determining the annual depreciation rate of the truck?

I have this in mind: 2001 Selling price (divide) years old (multiply) .5% (Hypothetical value)

Also, are there variables that will be determinants on the selling price like:

Quality of Parts installed
Insurance Policies
Monthly Amortization (If Applicable)
Recent expenditures on the vehicle

Any info would be great and very much appreciated. Thanks!
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Re: How to determine Chevy Silverado's annual depreciation r

Postby jepics » Sep 09 2010, 3:34am

I doubt if you could apply a straight-line formula to depreciation. Typically, any vehicle will lose a greater percentage of its value in the first few years, and then it levels out.

So many factors go into the worth of a vehicle - including the fickle buyer. How well it has been maintained, mileage, accident history, whether there is a transferrable warranty, condition of paint and tires, and the list goes on.
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Re: How to determine Chevy Silverado's annual depreciation r

Postby ShiningSilver [OP] » Sep 09 2010, 4:14am

Hey thanks for the advice.

If I can't find a formula, then I'll just find the mean/average of the selling price of identical models on the net, papers and directories.
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Re: How to determine Chevy Silverado's annual depreciation r

Postby koolz71 » Sep 09 2010, 5:40am

I dont think there is a technical formula..whenever i sell something i just look at what other trucks are selling for in the area, and usually ask about 500 less lol
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Re: How to determine Chevy Silverado's annual depreciation r

Postby Hartski » Sep 09 2010, 1:06pm

It depends so much on the market, the area, how good of condition, ect. Best thing to do is check the Blue Book value.
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Re: How to determine Chevy Silverado's annual depreciation r

Postby jepics » Sep 09 2010, 4:42pm

I usually look around for a while - see what the local market (availability & demand) is, how mine compares with others (usually much better than average!), check the Blue Book value, go to Edmunds and price it with options - print a window sticker too! It is a marketing thing rather that a depreciation calculation.

I generally figure out the depreciation after I sell a vehicle: cost plus repairs minus resale amount, divided by number of service years. Over time, I've achieved the best numbers on the vehicles I kept the longest (as long as the repair costs are not overly high - but I'd better leave my Dodge out of the discussion).
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Re: How to determine Chevy Silverado's annual depreciation r

Postby GMman » Sep 10 2010, 8:31pm

KBB.org I think is the standard that most look at for prices. Hope this helps.
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Re: How to determine Chevy Silverado's annual depreciation r

Postby ShiningSilver [OP] » Sep 15 2010, 7:42am

Thank you all for the suggestions. I will consider them strongly on the final pricing of my dad's ride.
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Re: How to determine Chevy Silverado's annual depreciation r

Postby Trumpster1 » Oct 05 2010, 3:04am

Okay, so this really isn't too much off topic, but kind of goes along with this, BUT....... Is it just me, or does the used values of our trucks seem to be going up? I was just looking at some comperables to mine on Autotrader.com and found that there are some selling for roughly $5,000 more than what I paid for mine back in December '09. Maybe I just got a killer deal, but DANG!!! Anyone want to buy a truck???? lol
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Re: How to determine Chevy Silverado's annual depreciation r

Postby jepics » Oct 05 2010, 4:26am

With the prices of new ones tugging at $40k, I think that is lifting the used prices accordingly. I can only hope that 5 years from now I can get more for it than I paid this year.

Keep the literary and technical contributions to the site coming in - good websites boost prices too.
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