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!
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.
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
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).
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
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.
Its a Chevy in my eyes it will never depreciate and everyone on here should feel the same
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