I've often wondered how the depreciation is measured, particularly on old domestics. They often get hugely discounted new, especially 2 years ago, so if it's based on MSRP instead of average price paid, it's a crock of sh*t.
Depends on what you mean by depreciation. Most of the posted residual values are based on MSRP as that's the only KNOWN reference point for data tracking. But as you mentioned....it doesn't tell the entire story when comparing highly discounted models vs those that sell close to msrp.
I know when we were shopping for this van the price difference was right around $5,000 between a Chrysler T&C equipped as close as they could be. Currently the difference is about $6,000 so obviously this one has held it's value well.
Yes, difference between resale value which is driven by market forces and accounting depreciation calculations. You're just talking about the residual value as was pointed out. Domestics can be a good deal used, as they fall off a $$ cliff after rolling out of the showroom - generally speaking. That's one reason I've driven used domestics!
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