buying used cars, 5 years old
#1
10-13-2009, 08:13 AM
buying used cars at 5 years old and residual value
I like to buy 4 to 6 year old cars, highly depreciated, well maintained.
When I go shopping I look for cars that have taken a huge hit but are quality cars.
The percentage shown is the percentage of value that each vehicle is likely to retain after five years with an annual mileage of 15,000 = 75,000 miles
This is the top ten 2008 list .. ...
1. 2008 Kia Rio — 26.3%
2. 2008 Kia Spectra — 27.0%
3. 2008 Hyundai Accent — 28.0%
4. 2008 Suzuki Reno — 29.2%
5. 2008 Suzuki Forenza — 29.3%
6. 2008 Mercury Grand Marquis — 30.4%
7. 2008 Kia Amanti — 30.6%
8. 2008 Chevrolet Malibu Classic — 30.7%
9. 2008 Hyundai Sonata — 30.8%
10. 2008 Jaguar S-Type — 31.3%
When I go shopping I look for cars that have taken a huge hit but are quality cars.
The percentage shown is the percentage of value that each vehicle is likely to retain after five years with an annual mileage of 15,000 = 75,000 miles
This is the top ten 2008 list .. ...
1. 2008 Kia Rio — 26.3%
2. 2008 Kia Spectra — 27.0%
3. 2008 Hyundai Accent — 28.0%
4. 2008 Suzuki Reno — 29.2%
5. 2008 Suzuki Forenza — 29.3%
6. 2008 Mercury Grand Marquis — 30.4%
7. 2008 Kia Amanti — 30.6%
8. 2008 Chevrolet Malibu Classic — 30.7%
9. 2008 Hyundai Sonata — 30.8%
10. 2008 Jaguar S-Type — 31.3%
Last edited by stomper; 10-13-2009 at 08:59 AM.
#3
10-13-2009, 09:04 AM
open-end lease or lease-end purchase
quoted from public sources ...
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There are times when you might not wish to have a high residual value. If you are planning to enter into an open-end lease, for example, you will be safer with a less aggressive residual value.
In an open-end lease, you are liable for the difference between the predicted residual value and the actual amount received by the lessor on the sale or auction of your vehicle at lease end. If the open-end residual value is artificially inflated to reduce the monthly payments, the shark will show up at lease end when the actual market value of the vehicle is lower and you owe the difference.
============
If you are seriously considering a lease-end purchase, you may also be a candidate for a lower residual value because that is typically the amount you will be expected to pay for the vehicle. Of course, you must balance that possible saving against higher monthly payments.
A low residual value also makes good sense if you are leasing a vehicle for business purposes and you have the opportunity to purchase it for personal use at lease end. Provided the vehicle is actually being used for business, the higher monthly payments may be deducted as a business expense during the course of the lease.
============
There are times when you might not wish to have a high residual value. If you are planning to enter into an open-end lease, for example, you will be safer with a less aggressive residual value.
In an open-end lease, you are liable for the difference between the predicted residual value and the actual amount received by the lessor on the sale or auction of your vehicle at lease end. If the open-end residual value is artificially inflated to reduce the monthly payments, the shark will show up at lease end when the actual market value of the vehicle is lower and you owe the difference.
============
If you are seriously considering a lease-end purchase, you may also be a candidate for a lower residual value because that is typically the amount you will be expected to pay for the vehicle. Of course, you must balance that possible saving against higher monthly payments.
A low residual value also makes good sense if you are leasing a vehicle for business purposes and you have the opportunity to purchase it for personal use at lease end. Provided the vehicle is actually being used for business, the higher monthly payments may be deducted as a business expense during the course of the lease.
#5
02-09-2012, 07:20 AM
I think it is nice idea to buy used car.These types of cars are well maintained with high quality.Thanks for sharing such nice ideas.
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