How to compute for the price of second hand cars

Miko2002

hey guys i need info on this, is it true that the depreciation is 1% per month? so for example ang bnew na optra nung june 2003 was 700000 and assuming june 2005 na ngayon that's 24 months so 24% depreciation. 700000 x .24 = 168000 depreciation. so 700000 - 168000 = 532000 ang selling price for super alaga na condition yon so it can go lower pa depending on the alaga of the car.

true?

so_obVIOS

I never thought there was a fixed computation for that It depends on so many things kasi (condition, mileage, history, usage...etc.)

kelunji

di ba a car's value depreciates a significant amount the minute it drives out of a dealer?

GreatBop

a car's value isn't something an accountant can calculate- it depends on so many factors.

and most of it has something to do with MARKET DEMANDS.

ie, a toyota and onda will hold most of its values. dahil maraming naghahanap ng mga ganung second hand- compared to say a ford...

the easiest way to find out what the market value is, is to look at the classifed ads. and see what the average going price is for the car. pag you think the car's in a much better shape than where it should be.. then add a few more dun sa on going value.

CiGaWeTte

Miko2002 wrote:

hey guys i need info on this, is it true that the depreciation is 1% per month? so for example ang bnew na optra nung june 2003 was 700000 and assuming june 2005 na ngayon that's 24 months so 24% depreciation. 700000 x .24 = 168000 depreciation. so 700000 - 168000 = 532000 ang selling price for super alaga na condition yon so it can go lower pa depending on the alaga of the car.

true?

I think that is what banks use for deriving the fair market value of cars, but i don't think that's applicable to the appraisal of second hand cars for reselling.

slamm

GreatBop wrote:

the easiest way to find out what the market value is, is to look at the classifed ads. and see what the average going price is for the car. pag you think the car's in a much better shape than where it should be.. then add a few more dun sa on going value.

Ditto... the book value is for insurance agencies usually.

ale828

another way to find is value is to bring it to a second hand car dealer and ask how much the trade in price of the car is. and from this price just add around 50-70K depending on the value of the car. we dont have something like a kelly's blue book here in the phil. But sooner of later there might soon be something like that to come out of the phil publication.

blink_process

2nd hand cars can not be computed. the market dictates them. though you can refer to the blue book of the accounting ****, but thats just a guide, which according to them after 5 yrs, a car has no value. but of course, thats not true...

its really a matter of supply and demand.

a civic hb 93-95 for example, dami naghahanap. kaya till now ang taas parin nya, though it should have no value, strictly speaking.

shun_sakurai

Straight-line depreciation maybe?

I dunno where you could find some appraised scrap value for a car though.