Many new car buyers are concerned about how fast their car’s value drops once the car is driven off the lot. When you purchase a car you pay retail but then the moment you leave the dealership with the car it’s worth then becomes it’s wholesale price. Retail is what you pay when you purchase a car and wholesale is what a car dealership will offer to pay for the car.
This wholesale price is often referred to the Black Book value because; “The Canadian Black Book” is a company that supplies wholesale and retail data to most dealerships and lending institutes. Black Book determines the vehicle depreciation based on the vehicle condition and on a percentage of it’s value from the previous year.
Here are a few basics in regards to vehicle depreciation:
- A car will lose between 15% to 20% of its value each year.
- A 2 year old car is worth 80% to 85% of what its value was after its first year.
- A 3 year old car is worth 80% to 85% of what its value was after its second year.
1 year old used vehicle = $16,000
2 year old used car = $13,600
3 year old used car = $11,560
A new vehicle depreciates the most in it’s first year because you have paid retail and the car is realistically only worth a wholesale value once you have driven off the lot.
Use the Ontario Car Financing Loans Car Buying Service to ensure you get the absolute lowest price on your next vehicle. You could save thousands of dollars from our extensive buying network.
Last year alone, almost 3 million Canadians purchased a new vehicle. Most over paid, but many smart shoppers saved hundreds, even thousands of dollars by using our car buying service
Apply Now : And be driving your best priced vehicle in days.