Three Calculation Methods of Used Car Price Evaluation

When trading in the used car market, used car prices are often not transparent, and second-hand car buyers must keep an eye on this. So, how can we accurately calculate the price of used Cars?
   One: Car dealers estimate
   When a used car dealer buys, it is based on the current new car price of its "basic type", that is, the cheapest one. The depreciation rate for the first year is approximately 15%, and between the second and fifth years, it is decremented by 5% to 8%. In the same series, the purchase price of used cars is based on the basic model. Therefore, the owner can use the current basic price of the car according to his own car, and after deducting depreciation, he can roughly determine the price of the car's purchase price.
   Second: mileage estimation
Some industry insiders have summed up the formula for calculating the used car evaluation price and estimated the price of the used car through the “54321 method”. It is generally believed that a vehicle traveling up to 300,000 kilometers will be scrapped. After more than 300,000 kilometers, the maintenance cost may be higher than the value of the car itself. Therefore, it is divided into 5 segments of 60,000 kilometers each. The value of each segment is 5, 15, 3, 2, and 1 of the new vehicle price. In other words, after the new car opened its first 60,000 kilometers, it consumed 5/15 of the value of the new car, while the second paragraph of 60,000 kilometers consumed 4/15 of the total value, and then gradually decreased. By analogy, if the current market price of the same model is 100,000 and the vehicle has traveled 120,000 kilometers, then the value of this vehicle is 100,000*(3+2+1)÷15=40,000 (yuan).
   III: Estimation of years
If you can not determine the travel distance of used cars, you can infer from their useful life, generally considered a used car has a service life of 10 years, also divided into 5 segments, that is, the first two years will consume 5/15 the value of. Or take the car with a current market price of 100,000 yuan as an example. If it has been open for 4 years, the used car will still be worth 60,000 yuan. For low-grade cars, the useful life can be adjusted.

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