How to depreciate a car?

[jankristopher]

[SIZE=3]Hello. I hope I'm in the right section. I would like to know how to depreciate a car. We are planning to sell one of our cars, but I don't have an idea as to how much value should be deducted on a yearly basis. Are there any rules? The aforementioned car will turn 4 this coming July, and it has logged ~35,000 kilometers. Its brand new price is ~P2.6 M. We tried to trade it in, but the dealer gave an appraisal of only P1.1 M. It's a Nissan Murano, btw. Thanks. :D[/SIZE]

[meledson]

typically, 10% per year from the original purchase price. not the current price.

super mura kung i-trade in, not advisable

[CVT]

I suggest you look at the vehicle prices in the Sunday Bulletin... That will give you a good perspective on the current market price of your vehicle....

For example, when we sold our 5-year+ old van early this year, its price is about 61% of the purchase price. Our 5-year+ old car, sold in the same month, its price is about 69% of its purchase price.

9707:electricf:

[niky]

If it's a common car, you can check average transaction prices and asking prices in the classifieds.

But for a car as uncommon as the Murano... you'll just have to guesstimate... I'd say the proper price will be whatever a buyer will pay for it...

At just 35k kms, I'd say around 2m would be fair... but since it's four years old, 1.6m might be closer to the maximum that secondhand buyers will be willing to pay.

This is how it goes... deduct 10% per year... leaving you at 1.6m... Drop another 200k because it's a Nissan (people don't like paying a lot for Nissans...) then add back another 100k because it's a rare/desirable car... Or deduct another 100k because it's an unusual "hard to maintain" car. :hysterical:

I'd say start asking at 1.8m, and advertise as "negotiable". Try to sell for at least 1.5, but don't be surprised if people will try to drop you to 1.3. Dealerships are usually more familiar with what their cars are worth, and will usually underquote by around 100k-200k when offering trade-in, so if they're offering you 1.1, they're looking at selling it for around 1.3.

[OldSchoolHack]

Prices of 2nd hand cars here in the Philippines is really screwed up. Normally beyond 5 years cars would call for junk yard prices but we have 20+ year old Toyotas here selling for 100K+ pesos.

Since the Murano is a rather rare car (trans - hard to find parts) and it is a Nissan (trans - perception is it is of inferior quality than a Honda-Toyota-Ford. again perception!) then you really cannot expect much.

Unless you find a willing buyer. Good luck.

[jankristopher]

[SIZE=3]Thanks for the inputs! :D
[/SIZE]

[james00112233]

you can go to different buy and sell shop, have them estimate it. kapag nakapagbigay na sila ng kani-kanilang estimate eh may idea kana kung magkano mo pwedeng ibenta directly sa buyer. just my idea.

[daimengrui]

Cars automatically lose 30% of its value in the first year alone. and lose 10% of its value in succeeding years.

2.6 - 40% = 1.560M
for a 4 year old car the ffg table applies
10k odo - subtract 5k
15k odo - subtract 10k
..
100k odo - subtract 95k

so your 1.56m would be 1.535m fair price.

If you wanna really sell it fast you have a 100k wiggle room. Also you will add 50-100k if its a Honda/Toyota bec they have higher resale value.

1.43m is a fair enough deal.

Due check the average prevailing rate... if it sells for below this computation you may have to add your computation with the Average Prevailing rate and average them

e.g. (1.56m + 1.3m ) / 2 = 1.43m (aba nag tally)

Let's try with a lower value car... Honda Civic 2.0S 2006 model PWM

Brand new price 1.1m
4 yo 35k odo

1.1m - 40% = 660,000
660k-30k = 630k
630k + 100k (Honda) = 730kt (50k lang kung MT at di top of the line)
Prevalent resale price is 680k (c/o sulit)
(730k + 680k)/2 = 705k

offer it as 730k may wiggle room ka na 25k

BTW when the car reaches its 25% value there is a resistance level... usually Hondas do not drop below this value unless they become 10 yrs or older...

its never scientific... I wish it was though

[niky]

its never scientific... I wish it was though

Yup... car prices locally are sometimes ridiculous.

A lot of sellers still think their mid-90's Japanese compacts are still worth 250k or so... get real! This isn't the mid-00's anymore! Who in their right mind will pay 250k+ for a fifteen year old car? (especially considering the rust issues most of them have)...

[mark_t]

Yup... car prices locally are sometimes ridiculous.

A lot of sellers still think their mid-90's Japanese compacts are still worth 250k or so... get real! This isn't the mid-00's anymore! Who in their right mind will pay 250k+ for a fifteen year old car? (especially considering the rust issues most of them have)...

I was surprised that a restored 1982 mitsubishi box type is selling for 300,000php at the car show.