Quick - should I get this car? Manufacturer buy back...

And again I tell you, you're judging the car's 'depreciation' and 'market price' on AOL autos. Please, don't do that. It makes you look ridiculous saying that a used 2013 Prius 2 should be selling for under $14,000.

AGAIN I challenge you: Find me a 2013 Prius 2, with under 10k miles, clean title, for less than $18,000. You won't be able to find it.

I spent weeks looking, and you won't find 2010 models for $13,829.

.....but AOL autos says it's true, so it has to be, right?

If it is true, the only one that got hoodwinked is you - paying $28,000 for a car that's worth less than half a year later. (less than half? And you actually BELIEVE those depreciation numbers? Are you 17 years old?)

 

Also, you numbnut, let me tear down the point you're (trying to) make. I don't know if you actually understand all the words on that website that you took a screenshot of. Words like "depreciation", and "insurance".

Here's how it works.
That assumes a single owner keeps the car through the duration of a year. It assumes the new owner finances the car, among other factors.

That means the person that initially purchased the car, paid the financing (more than likely); paid the fees, taxes, etc.

I purchased the car 4 months after the original owner. That means I don't pay the fees (although I do pay taxes, but that's unavoidable), I don't pay the financing cost, I don't pay the opportunity cost. And since it's 4 months through the year, I certainly don't pay the "Depreciation" cost of $7,617. Insurance... you're really factoring in the cost of insurance into the DEPRECIATION of a car!? Why don't you factor in the amount of $ it costs me to run the AC in my house while you're at it.

Let's say it's month 4 of 12. At worst I pay 1/3 of the depreciation cost, but for the hell of it let's say I paid half. That's $3808.50. Financing I didn't pay. Insurance is irrelevant to the cost of depreciation. As is maintenance. Taxes I paid around $1500, but also, irrelevant to the cost of depreciation, as the original owner also paid taxes on the car, so you certainly don't factor that in.

What that means is total, for the car I purchased, should be $28,500 (MSRP) minus depreciation cost of $3808.50. Hell, let's also add another $3000 just for the hell of it! $28,500 - $3808.50 - $3000 = $21,691.00

Now I want you to do me a favor - close out of AOL autos. You don't understand the way basic accounting works, so it's doing you no good. Let me introduce you to the real world. Go to www.ebay.com, www.autotrader.com, or www.craigslist.org and set the necessary parameters for a 2013 Prius II with under 10k miles.

Now look at the results.

Do you see anything there for "$13,xxx"? No. You'll only see cars around, wait...it can't be right... $21,500.

That's the way you calculate depreciation. It's not too difficult if you have a basic concept or understanding of math.

Summer's over, go back to school.


Here's my point:

YOU USED THE "COST OF OWNERSHIP" TO CALCULATE DEPRECIATION. As if what the first owner paid in finance charges and insurance should count against the value of the car.

You're an idiot.