How to Calculate Car Depreciation Value
Do you want to calculate the depreciation value of a vehicle, or a car? The depreciation value is an extremely important tool whenever you are planning to buy or sell a car. After you are done with calculating the depreciation value of the vehicle you are planning to buy or sell, you will come to an estimated amount for it down the road. You will basically get to know about how much a vehicle will cost after 7-8 years later.
In order to take out the depreciation, the ways can vary and so can the ratings of the depreciation that you are planning to calculate.
Instructions
-
1
For starters, you need two things in order to calculate the depreciation value of a particular vehicle. The first thing you require is a vehicle with its VIN, the Vehicle Identification Number. It will help you know a lot about your vehicle. The second most important thing you need is a calculator, since the numbers might get too complicated for you and you can solve everything in an easier manner.
-
2
Once you are done with getting the aforementioned things, it is time for you to research on the residual value of your car. You can easily get the residual value for any vehicle. You just have to search the internet thoroughly.
-
3
Third, you must find the MSRP value of your vehicle. It will be easily available on the original window sticker. It is not a problem to find. In case you have lost the sticker, and you think that you cannot find out about the MSRP value yourself, then you can always call a dealer who is dealing in such cars. He will tell you the exact MSRP value of your car. The internet can also give you a range of values for the MSRP value, but in case your car contains extra accessories, it might cost more.
-
4
Now, once you have all the data that you needed, it is time to start calculating. The percentage of the residual value you have found out in the third step, multiply it with the car’s original MSRP value. The answer that you get will be the depreciated value of your vehicle. In case you are having trouble with finding out the value manually, you can always use a calculator to make things easier for you.
