When do cars depreciate to their minimum value?
Assuming they are in comparable condition, a 2010 Mustang is worth more than a 1999 Mustang. A 1972 Mustang is also worth more than a 1999 Mustang. At about what age do most cars finish depreciating and start appreciating? I'd really like a link to an authoritative source.
- whisper9191Lv 57 years agoFavorite Answer
With all due respect, you're comparing apples and oranges.
Something to consider is that you're looking at retail/wholesale value versus perceived intrinsic (market) value. A 2000 Mustang is worth more than a 1999 Mustang because it will have, on average, lower mileage, and would normally have less wear and tear on it. There are actual formulas which are used to determine retail/wholesale value, based on age, condition, mileage, etc.
By comparison, a 1972 Mustang is worthless as a retail or a wholesale vehicle. No bank would ever finance a 41 year-old car. There is a market value for this car, due to its popularity and rarity. However, this value is determined by an artificial market of collectors. As such, the particular "value" of any car is very subjective. For instance, a 1986 Mustang is worth almost twice the amount as a 1986 Mercury Capri, which was the exact same car, even though the Mercury was built in lower volume, and is a more rare vehicle.
No car will ever appreciate in value in a traditional sense. It will depreciate to the point where it is, quite literally, worth its weight in scrap. To the average buyer, this is all it will ever be worth. However, due to a perceived intrinsic value, to a collector, this could very well be a $50,000 vehicle. For example, a Geo Metro, in mint condition, with low miles, could be worth $15,000 to the President of the Geo Metro Car Club of America (I made that up, no clue if it actually exists). What would it be worth to you? $500? $600? This is perceived intrinsic value.
There is no set point when this "appreciation" occurs. In fact, there is really no way to tell if it will occur at all.
Hope this helps.Source(s): 14 years retail auto sales experience.
- 7 years ago
The car fully depreciates within 20-30 years. The only time it appreciates is when it becomes a collectible. And who knows what will be collectible in 30 years.
- KennyLv 77 years ago
17 to 23 years old. By that time the car is worth around $1000. Equal value to as if a parts car. After that it becomes a classic to some and the value goes up as it gets more rare.
- Anonymous4 years ago
1Source(s): List of Online Suppliers http://wholesaledirectories.latis.info/?qtI9
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- nobama12017Lv 57 years ago
- ?Lv 77 years ago
HI MOST CARS NEVER APPRECIATE. THEY DEPRECIATE. THERE ARE EXCEPTIONS OF COURSE. MANY CLASSIC CARS , MANY , BUT NOT TOTALLY INCLUSIVE TO CERTAIN CARS FROM THE 50s, 60s, ETC. IT WOULD DEPEND ON NUMEROUS THINGS, DESIRABILITY, NUMBER BUILT, ETC. MANY CORVETTES, THUNDERBIRDS, CHEVYS, CHRYSLER CARS , ETC. WOULD FALL INTO THIS GROUP. JUST ENJOY YOU CAR, THERE'S NO DEFINITE WAY TO DETERMINE WHAT CARS WILL BE COLLECTABLE AND WILL APPRECIATE.Source(s): 50+ YEARS AS AN AMATEUR MECHANIC AND CAR ENTHUSIAST.