What's That Car Really Worth?

WHAT'S THAT CAR REALLY WORTH? YOUR CAR IS A LIFELINE, GETTING YOU WHERE YOU NEED TO GO, CARRYING WHAT YOU NEED To BRING, AND WITH ALL THE CONVENIENCE YOU'VE COME TO EXPECT. BUT WHAT IS YOUR CAR WORTH? EVEN MORE IMPORTANTLY, WHAT DETERMINES A CAR'S VALUE? HERE'S HOW TO QUALIFY THE TRUE VALUE OF YOUR NEXT CAR, AND AVOID GETTING A RAW DEAL FOR YOUR AUTOMOBILE. VALUE MSRP The Manufacturer's Suggested Retail Price will ultimately dictate the sales price of the vehicle at launch. DEMAND Popular and desirable cars command a higher price, due to the inherent value placed upon them by market forces, INVOICE PRICE This reflects the true value of the car, providing insight into the dealer's cost. Nem Car FEATURES Vehicles with additional perks, including heated seats, leather interior, and touchscreen interface, are deemed more valuable in the market. CANADIAN BLACK BOOK Canada's most trusted automotive valuation service, the CBB provides official value of new and used cars, based on mileage and broad categories for physical condition. DEMAND Desirable cars retain a higher price over time, due to their sustained popularity. FEATURES Used Car The manufacturer's amenities, combined with after-market parts dictate the additional value attributed to the vehicle. MILEAGE The many pieces of a functioning vehicle are subject to gradual decline as they are used, de-valuing the car as a whole in the process. PHYSICAL CONDITION The structural integrity and aesthetic appeal of a vehicle is based on its physical condition; rust, damage, and other factors can reduce the value. AGE Whether a car is driven or not, age can either de-value a vehicle, due to the assumption of steady decline, or add value in the case of vintage and collectible cars. DEPRECIATION ANOTHER FACTOR THAT DETERMINES THE VALUE OF A VEHICLE IS DEPRECIATION; THE NATURAL DECLINE IN VALUE THAT OCCURS DUE TO A NUMBER OF FACTORS. PERCEPTION OF SUPPLY AND DEMAND The market prescribes value to vehicles based on perception. Cars with low supply and high Cars with high supply and low demand will fall off in value, due to their widespread availability; in other words, a speedy depreciation. demand will remain valuable after many years, due to their scarcity; these cars depreciate slowly. A good rule of thumb: A new car will lose about 20% of its value the first year, and 15% per year after that. FOR SALE! DESIGN Vehicles that receive a design overhaul will retain a higher value due to their novelty and aesthetic. MAINTENANCE Vehicles with a lot of maintenance issues will depreciate more quickly. Vehicles with specialized parts are a hassle to maintain and also depreciate more quickly. THE GOOD, THE BAD, AND THE RUSTY SOME VEHICLES STAY TRUE TO FORM AND FUNCTION WELL AFTER THEY ROLL OFF THE ASSEMBLY LINE. OTHERS CAN QUICKLY TURN A GOOD DEAL INTO AN ORDEAL. MAKE SURE YOU KNOW WHAT'S IN STORE WHEN CHOOSING YOUR NEW CAR. Vehicles That Depreciate The Fastest (percent of total value retained after 60 months) «««««««««««« 16% CHRYSLER SEBRING 16% MERCEDES BENZ S-CLASS 16% |«««««««« 17% KIA SEDONA LINCOLN TOWNCAR 17% «« MERCURY GRAND MARQUIS 17% SAAB 9-3 17% SMART FORTWO 18% CHEVROLET COBALT 18% HYUNDAI ACCENT 18% KIA RIO Vehicles That Depreciate The Slowest (percent of total value retained after 60 months) 70% TOYOTA FJ CRUISER «« ««««« 62% TOYOTA TACOMA «««««««« 60% JEEP WRANGLER 56% TOYOTA 4RUNNER 54% CHEVROLET CORVETTE |««««««««<« 52% TOYOTA TUNDRA ««««««« 52% CHEVROLET CAMARO | «««««« 51% HONDA CR-v 51% CHEVROLET SILVERADO 51% 1500 DODGE CHALLENGER Brands with Ouerall Best Retained Values in Canada (percent of total value retained after 48 months) 53% 52% 50% 50% 49% TOYOTA LEXUS SUBARU. MITSUBISHI MOTORS PORSCHE TOYOTA SUBARU LEXUS MITSUBISHI EVALUATING YOUR NEXT CAR CHOOSING THE RIGHT CAR TO TAKE OFF THE LOT REQUIRES TIME AND PREPARATION. USE THIS CHECKLIST TO GUIDE YOUR SEARCH. Find Invoice Price for New Can Make sure to obtain reports on invoice pricing, or the true at-cost value of the vehicle in question. Canadian Black Book Value cbb Consult the CBB guide before purchasing a used vehicle and account for factors such as damage, features, and mileage. O Track Recond for Used Cans Some shops may try to sell vehicles that are simply refurbished after an accident or other event. Ask for a CarProof or other vehicle history report to get a glimpse of the car's history. O Keep a Frugal Mindset Leather interior is a nice accessory, but it's only worth the Paint colour can affect overall car value of ne or value you ascribe to it. used cars; don't be starstruck by sparkly paint. Consider living without a high-dollar Tape players were once a high-demand stereo and install one after you make your purchase to save some money. accessory; avoid chasing trends and remember what's TRENDING important in a vehicle. O Shop Around Find comparable new or used models nearby and note their prices. %24 "Kick the tires," so to speak, and see if anything stands out about the model you're considering. CONCLUSION Determining the value of your next car is not a challenging process. By understanding the ins and outs of vehicle value, depreciation, and longevity, you can walk into your next vehicle purchase with the confidence needed to save a couple bucks and feel satisfied with your choice. SOURCES unhaggle http://en.wikipedia.org http://www.flickr.com/photos/9993075@NO6/3932646081/ http://editorial.autos.msn.com/article.aspx?cp-documentid=900726 http://www.kbb.com/car-advice/articles/what-are-kelley-blue-book-values/ http://www.kbb.com/new-cars/best-resale-value-awards/best-resale-top-10-cars/?r=93122137477621440 http://www.thecarconnection.com/news/1077876_the-nine-things-that-affect-your-cars-resale-value/page-2 http://www.forbes.com/2010/10/27/cars-resale-value-lifestyle-vehicles-depreciation-residual-used_slide_2.html http://www.theglobeandmall.com/globe-drive/new-cars/auto-news/top-vehicles-and-top-brands-for-retained-value/article12220813/ http://www.theglobeandmall.com/globe-drive/driving-It-home/top-10-the-most-popular-cars-and-trucks-in-canada-this-year/article10080000/ MSRP