|
Oh yea, and as far as depreciation goes, the more expensive the car, the more money you will lose driving off the lot. ie, a $120,000 BMW M6 that is one year old and only has 7,500 miles on it is only worth $85,000. That means you lost $35,000 in one year. I know this because I had a customer do exactly this (he bought a Z06). On the other hand, if you buy a vehicle that is only $30,000, a year later with the same miles it should be worth around $22,000 ($8,000 loss).
See, each and every vehicle produced has something called a residual value (used to determine lease payments). The residual value is a financial institutions prediction for what the car will be worth after a certain amount of time with a specific amount of miles on it. For example, the 2008 Silverado Extended Cab LT1 has a residual value of 61% after 36 months of use with 12,000 miles per year. If you only use 10,000 miles per year, your residual jumps to 66%. Use 15,000 per year and it drops to 56%. There's some "inside" information for you.
|