et2 wrote:
The depreciation comes off the price you paid. If you over paid then the depreciation is more, if you get a screaming deal, it still depreciates after you drive off the lot.
It can't be based off the price he paid AND if he overpaid then is more. That is twisted logic. No one knows what you paid, so it is not based on what you paid. It based on industry and financial depreciation models that take into account several factors like make, model, condition, year, condition, etc. it has nothing to do with what you paid for it.
For example, if two people bought identical coaches at the same time and one paid full MSRP and one paid 35% under MSRP... and assuming a predetermined time in the future... say 1 or 2 years later... AND the coaches were kept in identical condition... The depreciated value would be exactly the same on both coaches. The depreciation comes off MSRP and is probably much higher than 18% for year one.