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Re: More explanation (archive)

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Posted by Steven on September 25, 1998 at 11:46:14:

In Reply to: More explanation posted by Trev P on September 25, 1998 at 08:48:32:


: Maybe I don't understand leasing 100% but you can't tell me a BMW depreciates more than a standard 20% in the first year? My calculation shows a depreciation of 33%!!
: :
: Something is not right here.

Who ever said anything about a "Standard 20%" depreciation?? There is no standard. It's whatever the traffic will bear.

In '97 Toyota dropped the price of their Supra Turbo by 10K. Imagine if you just purchased a '96 for $50K. Now you have a 1 year old USED car competing with a new one for $39K. That made the '96 worth about $35K at best, with a trade in value lower than that.That's a 30+% depreciation.

Your 1.9 is up against something similar with the introduction of the 2.3 model. You'll have to own the 1.9 for a few more years to soften the annual depreciation hit.

Emotional purchases cost money! Get over it and decide if you want to continue playing in the game of "toy" cars.


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