Quote:
Originally Posted by jnotrom711
Well... yes there is some definite errors in your methodology, and likely not in your favor...
1) Edmunds is a terrible source for data regarding real values. So thats not blue book thats Edmunds data unless Edmunds pulls data from Kelly blue book (not sure). KBB.Com would be blue book. They'll give you different data. As will NADA, Black Book, Manheim, and carfax. LOL. it's all just guesses except manheim, that shows real dealer transactions.
2) You're comparing wholesale value to retail value. This shouldn't come as a shock that wholesale values are lower than retail, thats how it works in pretty much any industry for the business to make money/margin. So when you say you go to sell in 2 years do you mean trade in? Because selling yourself private party vs trading in to a dealer you could likely get more. There is also tax credits to deal with, are you trading in something now? do live where there is sales tax? does that state offer tax credits on trade in? A lot of information you need to be able to build a good comparison, and I dont have time to get in to all of it right now.
However... No your numbers aren't right, assuming a couple things.... which brings me to point 3....
3) the screenshots dont show what values you entered for miles and condition. So if you entered 11,000 miles for the retail purchase value, and kept 11,000 miles and excellent condition for the the trade-in part, you're way off, unless you put no miles on it, and traded it in the next day. But youll have 2 years worth of miles on it over 11,000 so maybe assume the car would have [...]
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Saved me from a long winded response, which was essentially going to come down to, “you’re not comparing apples to apples.”
Agree with you 100%, the numbers are being looked at/weighed against each other incorrectly for the reasons you stated. But the depreciation and numbers you mention in your response are spot on.