Car depreciation rate

[jhnology]

What is the average range of brand new Japanese car depreciation rate? Ppl always say car deprec highest in first 2 years?

1 year old: XX%

2 year old: XX%

3 year old: XX%

4 year old: XX%

5 year old: XX%

6 year old: XX%

7 year old: XX%

8 year old: XX%

9 year old: XX%

[D3badge]

Your question is very deep. Between Japanese cars brand there are B&B to premium cars, and within the same brand you can have cars ranges from $100k++ to $400K eg. Toyota thus no average depreciation! Market supply and demand play into Toyota Altis to 400k Alphard and supra have different depreciation too!

[jhnology]

On 6/24/2024 at 7:43 PM, D3badge said:

Your question is very deep. Between Japanese cars brand there are B&B to premium cars, and within the same brand you can have cars ranges from $100k++ to $400K eg. Toyota thus no average depreciation! Market supply and demand play into Toyota Altis to 400k Alphard and supra have different depreciation too!

Wah.  Didnt know is so complex.

 

Will it be easier if use Toyota Altis as discussion point?

[Kklee]

IMHO.
I think also have to see mileage. 

[inlinesix]

Maybe check Sgcarmart for reference

[Voodooman]

Is this a school project?  😂

Assuming hold to maturity, 10%.p.a. loh. Hold to trade, really depends on the make, economic cycle, COE prices, etc.  

If EV, the anti EV camp will tell you it will fully depreciate in year 3. 😂😂😂

 

 

Edited June 24 by Voodooman

[Carbon82]

A very complex question where even a genius cannot provide a 100% correct answer. There's too many variables at play, such as conditions of the car, popularity of the brand / model, market demand, COE movement, dealer profits level, government policy / tax structure, so on. 

In general, once the car is out of the showroom, immediately lost 15 - 20% of its value. By the 3rd year, you can assume it will depreciate by at least 40%. From 7th year onwards, expect just the PARF value + COE rebate. This is generally applicable for B&B model and when trading in to AD / used car dealer. 

The only exception is when COE premium is shooting through the roof. Even a 4 - 5 year old car can sell at profit, no joke.

[Jamesc]

Drive a new car out of the show room and it's worth $10,000 less.

[Maxus-MIFA9]

On 6/24/2024 at 11:01 PM, Jamesc said:

Drive a new car out of the show room and it's worth $10,000 less.

No need even to drive out of AD. 

The moment they handed over the car key, its already depreciated  

[ER-3682]

On 6/24/2024 at 10:51 PM, Carbon82 said:

A very complex question where even a genius cannot provide a 100% correct answer. There's too many variables at play, such as conditions of the car, popularity of the brand / model, market demand, COE movement, dealer profits level, government policy / tax structure, so on. 

In general, once the car is out of the showroom, immediately lost 15 - 20% of its value. By the 3rd year, you can assume it will depreciate by at least 40%. From 7th year onwards, expect just the PARF value + COE rebate. This is generally applicable for B&B model and when trading in to AD / used car dealer. 

The only exception is when COE premium is shooting through the roof. Even a 4 - 5 year old car can sell at profit, no joke.

If wanted to know how much lost in the 1st, 1-2 Years,this Question can ask @RadXbecause He changed Cars very often.

[Mockngbrd]

On 6/25/2024 at 6:52 AM, Maxus-MIFA9 said:

No need even to drive out of AD. 

The moment they handed over the car key, its already depreciated  

Unless Coe 200k

[Inlinefour]

On 6/24/2024 at 10:51 PM, Carbon82 said:

A very complex question where even a genius cannot provide a 100% correct answer. There's too many variables at play, such as conditions of the car, popularity of the brand / model, market demand, COE movement, dealer profits level, government policy / tax structure, so on. 

In general, once the car is out of the showroom, immediately lost 15 - 20% of its value. By the 3rd year, you can assume it will depreciate by at least 40%. From 7th year onwards, expect just the PARF value + COE rebate. This is generally applicable for B&B model and when trading in to AD / used car dealer. 

The only exception is when COE premium is shooting through the roof. Even a 4 - 5 year old car can sell at profit, no joke.

not for mine cos coe 150k period dealer still quote me paper + body although coming 4 years old under warranty with service too 🤫🤫🤫

 

once over 5 years old lagi worse

 

so drive till coe expired better 

 

never make a single cent before only pants dropped 🤣🤣🤣

 

in SG unless deep pocket buy unique rare models then maybe can make or break even 

 

but super high risk too 

 

my 2ml worth of ron92 

 

best is BMW aka Bus MRT Walk no depreciation 🤑🤑🤑

Edited June 25 by Inlinefour

[Inlinefour]

On 6/24/2024 at 9:47 PM, inlinesix said:

Maybe check Sgcarmart for reference

one careful lady doctor owner

 

only for grocery shopping 

 

🤫🤫🤫

[Jamesc]

Terrible dealer.

I would have given you paper plus body plus $10,000.00

On 6/25/2024 at 11:02 AM, Inlinefour said:

not for mine cos coe 150k period dealer still quote me paper + body although coming 4 years old under warranty with service too 🤫🤫🤫

 

once over 5 years old lagi worse

 

so drive till coe expired better 

 

never make a single cent before only pants dropped 🤣🤣🤣

 

in SG unless deep pocket buy unique rare models then maybe can make or break even 

 

but super high risk too 

 

my 2ml worth of ron92 

 

best is BMW aka Bus MRT Walk no depreciation 🤑🤑🤑

 

[Jamesc]

On 6/25/2024 at 11:05 AM, Inlinefour said:

one careful lady doctor owner

 

only for grocery shopping 

 

🤫🤫🤫

All my cars are driven by retired school teachers.

Very wild school teachers who fit quad exhaust and spot rims and big ass spoilers.

Why teachers not allowed to zing up their cars like anyone else huh?

[Soya]

Whatever TS read from overseas textbooks, can throw away

Only in Sg where used cars annual depre can be same or even higher than new car

 

[kobayashiGT]

You full cash and take loan, the depreciation rate will be different too. 

Full cash will be a straight line, how much money divide by the years of lease. 
Loan wise, you need to factor in the upfront loan amount you have paid. 
 

[Beehive3783]

COE price and OMV will also affect the depreciation for the same car model registered in different months. So the most straightforward way is to use straight line depreciation over 10 years, with the following variables

1. do you want to include PARF rebate into the depreciation calculation?

2. do you want to include loan interest paid into the calculation?