Good bye Lexus
Pole Position
Joined: Nov 2014
Posts: 200
Likes: 13
From: CA
pretty harsh response for no good reason-what a Debbie downer...go (try to) beat up peeps on the Tesla forum...
Last edited by kmm; Oct 16, 2017 at 05:05 PM.
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Joined: Mar 2015
Posts: 59
Likes: 3
From: CA
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Joined: Sep 2010
Posts: 540
Likes: 31
From: Ma
Lol there is a lot of truth to this but like someone else mentioned the GS is not good at holding its value either. I really like the look of these grand cherokees. Im not into newer American cars but this would definitely be on my short list if i had to get one as a replacement to the GS.
Intermediate
Joined: Sep 2007
Posts: 397
Likes: 70
From: Tennessee
The depreciation or "not holding value" is very often miscalculated, in forums and even in automotive press.
For example, here is how it is typically calculated:
MSRP of a brand new vehicle is $x
Value of the vehicle after 3 years is $0.5x
So depreciation after 3 years is 50%.
This seems pretty high depreciation.
Here is how it should be calculated:
MSRP of a brand new vehicle is $x
Purchase price of the brand new vehicle is $0.75x (i.e. purchased at 25% discount)
Value of the vehicle after 3 years is $0.5x
So depreciation after 3 years is (1-0.5x/0.75x) = 33%.
This is not so high depreciation.
Since every buyer pays a different purchase price, the depreciation is different for different buyers and it is difficult to calculate the depreciation of a model, such as the 4GS, across the board. However, stating the depreciation with respect to the MSRP is incorrect because nobody pays MSRP.
For example, here is how it is typically calculated:
MSRP of a brand new vehicle is $x
Value of the vehicle after 3 years is $0.5x
So depreciation after 3 years is 50%.
This seems pretty high depreciation.
Here is how it should be calculated:
MSRP of a brand new vehicle is $x
Purchase price of the brand new vehicle is $0.75x (i.e. purchased at 25% discount)
Value of the vehicle after 3 years is $0.5x
So depreciation after 3 years is (1-0.5x/0.75x) = 33%.
This is not so high depreciation.
Since every buyer pays a different purchase price, the depreciation is different for different buyers and it is difficult to calculate the depreciation of a model, such as the 4GS, across the board. However, stating the depreciation with respect to the MSRP is incorrect because nobody pays MSRP.
Last edited by bb700092; Oct 16, 2017 at 06:18 PM.
Pole Position
Joined: Nov 2014
Posts: 200
Likes: 13
From: CA
The depreciation or "not holding value" is very often miscalculated, in forums and even in automotive press.
Since every buyer pays a different purchase price, the depreciation is different for different buyers and it is difficult to calculate the depreciation of a model, such as the 4GS, across the board. However, stating the depreciation with respect to the MSRP is incorrect because nobody pays MSRP.
Since every buyer pays a different purchase price, the depreciation is different for different buyers and it is difficult to calculate the depreciation of a model, such as the 4GS, across the board. However, stating the depreciation with respect to the MSRP is incorrect because nobody pays MSRP.
Intermediate
Joined: Sep 2007
Posts: 397
Likes: 70
From: Tennessee
Depreciation, by definition, is the value lost with respect to the price paid. Used car auctions probably use MSRP because they did not pay the purchase price. However, we individual buyers do not have any reason to calculate that inaccurate way.
Last edited by bb700092; Oct 16, 2017 at 06:47 PM.
Pole Position
Joined: Nov 2014
Posts: 200
Likes: 13
From: CA
...unless someone's job requires them to know such information...
Thread Starter
Driver School Candidate
Joined: Dec 2014
Posts: 39
Likes: 1
From: Texas
When your leasing your car who care about depreciation? The GS didn’t hold its value and I know getting this jeep it will be the same way! Keep it for 3 years then drop it off! Then on to the next!