Depressing Depreciation
In Alberta in 2011 my truck had a list price of just over $84,000. It could be bought for $70,000 cash. Now, three and a half years later with 62,000 miles on it I would be doing good to get $40k out ...
Forum Discussion
Most trucks and cars are bought to be used. Very, very few are bought as collector's items to be stored for later sale. For that reason, they depreciate as they get used up, and the depreciation is worst the first 2-3 years of the vehicle's life.
My grandfather (RIP, grandpa) was a new car dealer his whole life, and he always said that the smartest and cheapest way to own cars was to find a good 2-3 year old, low mileage one and drive it until the wheels fell off. Let somebody else pay the first couple years depreciation, and after you acquire it, use it up, until it starts costing way too much to keep on the road.
Into the bargain, of course, the more they cost initially, the steeper the depreciation those first couple years. This is because no matter what the make and model or how it is equipped, the end of their useful life, they are all worth the same $1,000 or so as a beater.
My grandfather (RIP, grandpa) was a new car dealer his whole life, and he always said that the smartest and cheapest way to own cars was to find a good 2-3 year old, low mileage one and drive it until the wheels fell off. Let somebody else pay the first couple years depreciation, and after you acquire it, use it up, until it starts costing way too much to keep on the road.
Into the bargain, of course, the more they cost initially, the steeper the depreciation those first couple years. This is because no matter what the make and model or how it is equipped, the end of their useful life, they are all worth the same $1,000 or so as a beater.
