Can anyone tell me what the depreciation rates on trucks is and what contributes to their loss in value. We are in the market for another truck and want to make a well educated decision. Thank you.

 

Is there a basic depreciation formula, like 20 percent the first year, 15 percent the second and 10 percent the third or something like that that can be used to calculate a ballpark figure. Being out of the game for a while it just dawned on me perhaps using the NADA Guide is a good start. Thank you.

 

It all depends on Make, Model, Engine, Transmission, Options and MILEAGE.
Use www.kbb.com or www.nada.com. Both of these sites allow you to input the above info and gives you a retail value, trade in value, and private seller value of the vehicle.

 

Thank you.

 

i dont know about any formula. but i do know that after 3 months of looking for a decent truck for work and play that dodge rams hold their value witch seems like forever. there are alot of beat up trucks out there and sellers exspecially dealers are trying to get an arm and a leg for them. i finally found mine with more options and at the same price as others that were not half as nice .. good luck and dont settle

 

As a general rule, never buy a vehicle less than two years old. Most of a vehicle's depreciation occurs in the first two years. If you buy anything newer than that you're throwing money away. You can spend less and not see your money fly away as fast through depreciation if you buy a two-year plus vehicle. When I hear people say they are investing in a car, I just laugh. Cars aren't investments, they are black-holes for money.

Generally, the same factors contribute to the depreciation of trucks as any other vehicle. Age, body condition, mechanical condition, mileage, etc. Aftermarket accessories/mods generally do not increase the value of a vehicle to anyone but the owner!

---Start Sermon. Also, I will give you this advice, even though you didn't ask for it. As a pastor, I encourage people to always buy a vehicle debt-free. If you have to take a loan for it, then you can't afford it. Let's face it. Most of us are broke. Accumalated debt just makes you more broke, other wise called "in debt." Buy what you can, used, and keep her till it dies or you can't justify spending more to keep her running. You'll be far better off in the end. ---End of Sermon