I am shopping for cars right now, I'm talking about my current experience with the cost of recently used vehicles (specifically Toyota, Honda, and other reliable brands).
> I work in the used car industry and across the board (on average) used cars depreciate at about 1.5% to 2% per month!
Where can I buy these two year old vehicles that are 48% off? Or a three year old vehicle for 72% off? I'm seriously asking, link me to a 2017 Toyota Highlander Limited for $22K or a 2016 Limited for only $11K...
Locally a 2017 Toyota Highlander Limited is $32K with 65K miles on it. Or $36K with under 20K miles, that's a two year old likely ex-lease vehicle that has a 15% discount, but a higher APR, worse features, higher maintenance costs, diminished warranty, and a lower resale value.
The current used market is highly irrational right now. Your imagined used market where cars are 48% off after only two years sounds fantastic, but that isn't the reality on the ground.
> Where can I buy these two year old vehicles that are 48% off? Or a three year old vehicle for 72% off? I'm seriously asking, link me to a 2017 Toyota Highlander Limited for $22K or a 2016 Limited for only $11K...
You misunderstand what 2% depreciation means per month.
2 years at 2% would be:
1 - (0.98^24) ends up at 38.4% off, not your 48%.
3 years at 2% would be:
1 - (0.98^36) == 51.6%, not your 72%.
The reason obviously being that 2% off monthly means that the 12th month's 2% is a lower dollar amount that the first month's 2%. This is also intuitively true since a vehicle depreciates more steeply at the beginning and less over time in total dollar terms.
Also I said 1.5 to 2%. At the 1.5% end of the range, a vehicle at 3 years is:
1 - (0.985^36) == 41.9%.
I am shopping for cars right now, I'm talking about my current experience with the cost of recently used vehicles (specifically Toyota, Honda, and other reliable brands).
> I work in the used car industry and across the board (on average) used cars depreciate at about 1.5% to 2% per month!
Where can I buy these two year old vehicles that are 48% off? Or a three year old vehicle for 72% off? I'm seriously asking, link me to a 2017 Toyota Highlander Limited for $22K or a 2016 Limited for only $11K...
Locally a 2017 Toyota Highlander Limited is $32K with 65K miles on it. Or $36K with under 20K miles, that's a two year old likely ex-lease vehicle that has a 15% discount, but a higher APR, worse features, higher maintenance costs, diminished warranty, and a lower resale value.
The current used market is highly irrational right now. Your imagined used market where cars are 48% off after only two years sounds fantastic, but that isn't the reality on the ground.