What is the True Market Value Of Pre-owned Luxury Car? And Why you Should You Care!

How does TMV(True Market Value) fall year after year for a brand new luxury car?

The value of a brand new luxury car continues to decline as it is used. However, the depreciation of a car is not constant; it resembles a curve. Shortly after the new registration, the drop in prices is particularly steep; the car’s greatest depreciation occurs within the first year. The fall in prices levels off somewhat between the second and third year. Thus, going for a pre-owned luxury car is a wiser option.

One of the reasons for the rapid loss in value of new cars is the oversupply of young 2nd hand luxury cars in addition to demonstration vehicles from dealers, there are also many ones to three-year-old cars on the market from leasing returns or decommissioned rental cars, which then lower the average residual value.

A new luxury car loses 11% of its value after leaving the parking lot

If you are thinking of getting a newer vehicle, you should consider investing your money in a newer used car if leasing is not an option. After all, buying a car is still one of the second largest purchases within a private household – after buying a property. New luxury cars lose their value much faster than second-hand luxury cars.

In the first year, particularly the average loss in value when driving 15,000 kilometers is usually almost 25 percent. In the following years, the average loss of value levels off at an additional five to six percent per year. And yet, the actual value still achievable on the market has already halved for many vehicle models after the first three years.

Drops by 15%-25% each year up to the 5th year

There’s no way: a new vehicle starts to lose value as soon as it leaves the dealership. To give you an idea, it is estimated that, on average, 10% of the value will be lost as soon as the purchase is made. But it is possible to have control over this percentage since some factors cause a greater depreciation.  

All of this contributes to the depreciation of the vehicle, which occurs more rapidly in the first 3 years after its manufacture, and this you can avoid by choosing from our pre-owned car collection of second-hand Audi cars and even used Lexus. The detail is that this estimate of 10% may vary according to the consumer demand for the car since the less sought-after cars suffer a greater devaluation than the most commercialized models.

Click Here to Read More: https://wheelyfine.com/pre-owned-luxury-car-depreciation/

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