How to determine the value of a used car

Jun 13 2010 When you see a new car just introduced and know that you will not be able to buy it, you can start thinking about buying it a couple of years down the road, when its value will be within reach and you would have also saved more money.
But how can you estimate its future value?
Well, all vehicles lose 24% of the purchase price after a year and then it is a gradual depreciation at the rate of 6% every year after the first year. This will give you an approximate value of what you should be paying for a particular vehicle three years down the road.
When you go to purchase a particular brand or model, keep this in mind and you are less likely to be misled by the private owner or the dealer salesperson. This approximate figure can be your target for putting aside savings so that you are in a position to buy the vehicle without much hassle.
It is this depreciation that most buyers of new cars are chary of and that is why the used car market is still doing quite well.

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