High depreciation in first 2 years

f500 SG

If new car prices will depreciate 20% for 1st year, 15% for 2nd year and 8.125% for the balance 8 years according to industry estimate, what’s the reason for buying a brand new car and not a 2 year old car?

manualisbetter SG

It's definitely cheaper to buy a car of 1-2 years.. however, you must bear in mind that you will be the 2nd car owner. If you are selling again within the next 1-2 years, the next owner will be the 3rd and many will avoid buying 3rd or 4th hand car unless they really have no choice... Getting a new car is still better if you can maintain it at least up to the first 3 years. Just my thought

speedygonzales SG

an assurance dat at there will b no engine or aircon problem caused by the previous owners….. cos if ur 2nd hand vehicle is problematic, u will nid to spend $$ to repair and rectify….

edouard_g SG

Hi,

I'm looking to buy soon too. where to you get these estimates? I see agent sell price 10% dep per year or less on new price, on top of which they pile all the other cost on.

Although if I was selling, i'm sure the figure would be much worse then you outlined, probably paper value plus one stale biscuit.

eD.

mushigen SG

New car depreciates by 20% first year? Where did you get that figure from?

Try buying the Altis/Sunny/whatever at 80% of present price one year later. Chances are it will be selling at a high price. I guess the 20% only applies if you SELL to dealers.

Then there is transfer fee, higher interest rates, and higher wear and tear to think about.