How much does a $16K loan from the dealership depreciate after 6 months? What about a year?
Most Helpful Guy
if you wanna know the rate of depreciation, it's fairly simple. it's (retail price-salvage cost)/(years). That's straight line depreciation. But it also depends on the car, model and what year it's on, too. It helps to know the since you're paying retail price, you are paying at a premium since they're selling to make a profit (from wholesale). So you'd have to know their margins to find it's value. A general role of thumb is that a car loses about 80-85% of it's value in it's life. 20% the 1st year0