Quote:
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Originally Posted by bwilson4web
There are four numbers needed:
HCH purchase price
HCH blue book price "n" years later
HC EX purchase price
HC EX blue book price "n" years later
Let me give you an example using the 2001 Prius and 2001 Echo. In 2001 we had to choose between a 1500 cc Prius and a 1500 cc Echo:
$21,000 - Prius 2001, new purchase price
$09,500 - Prius 2001 Ebay "Buy it now" (117,445 miles) #4616782257
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$10,500 - depreciation
$14,200 - Echo 2001, new purchase price (ours)
$06,800 - Echo 2001 Ebay "Buy it now" (77,388 miles) #4618008441
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$07,400 - depeciation
Prius depreciation cost higher, $3,100 over 5 years . . . CR reports $3,200. Close enough.
Good luck!
Bob Wilson
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Bob is quite correct regarding the dollar amounts. Another way of looking at it is that the Prius lost 55% of its original value and the Echo lost 52% of its original value. Pretty close. Note that the Prius has gone half again as far as the Echo.
The problem with models and trims introduced in the last couple of years is that there is yet no good projection of what they will be worth when they are five years old. There have been some reports that some of them have actually appreciated when driven off the dealer's lot. Where this is currently true, I don't expect it to hold up as supply increases. But what the depreciation will be (either in $ or %) is not yet known.