I'm looking to purchase a 2006 VW Passat 2.0T Sedan and it costs $8,749 with 99,180 miles on it. Seeing as how it's going to be a new year, will the car most likely lower in value sometime soon? If so, how much lower (a thousand or a few hundred)?
There's also a 2005 Pontiac G6 GT that costs $7,690 with 112,941 miles on it and I'm confused as to which car would be a better investment.. This is my first car ever that id be purchasing myself so I want to make sure I'm not getting screwed.
I'm looking to purchase either one in the next few months, so I still have a little time.
(*just in case* anyone asks.. Yes, their both pre-owned vehicles).
Thanks!!
Update:Wow.. Thank you for being absolutely rude. FYI: I've already invested in a brand new car which costsed me a good $30,000. Sorry, that I don't want to spend an arm and a leg on a super expensive vehicle when it gets me from just point A to point B, not like I plan on traveling cross country with it. I have a child so having a not so expensive vehicle to get around local sounds pretty logical to me. The ones I've mentioned in particular are just options as a "less expensive" vehicle to get for just myself, one I don't have to share with my husband.
Answers & Comments
Verified answer
A used car IS NOT an "investment". Unless it's a Ferrari or some other exotic that is known to increase in value over the years, it's just another old car and the value will continue to drop.
Depreciation varies depending on the make and model of car. Some popular cars keep their value better than others. You really can't compare two different cars side-by-side and get the same figures.
The LARGEST depreciation loss is in the first 2-3 years and then it kind of levels off after that, but values keep going down until eventually you end up with a "throw away" car. A throw away is when the car is so cheap that if something expensive breaks, it's better to just call the junk yard and have it towed away rather than fixing it.
Every day starting the day you drive it off the lot. Just because the calendar year changes doesn't mean the value of the car is going to drop. It might lose $50 but no more. Certainly nowhere near the $1000 you suggested.
Cars are not investments. You can't think of them in those terms. They lose money and they cost you money every day. They are not an investment. They are a liability.
Thanks for telling us that the 2006 VW and the 2005 Pontiac were both used. How would we have known?
If you want my honest opinion I wouldn't own either car. VWs are not very reliable and Pontiac makes lousy cars. That's why they went out of business. I'd look for a Honda, Toyota or Mazda if I was looking for a decent inexpensive used car.
I would suggest toyota if you want your car to hold value and cost minimum on repair.
Anyway, for those 2... Whichever one you prefer if it was brand new. Seems like $1000 per year depreciation around that time about right so consider them relatively same price, year, and mileage.
Both cars have about 15,000 miles per year (assuming they have been in use all 7 or 8 years) which is good because over 15,000 miles per year could lead to more problems. I would check the carfax to see if either of them were in an accident and if they were well taken care of. I'm not sure if they will go down in value?
And we were thinking that those old cars were new.
"pre-owned"? Ha Ha. Try used.