used chevy equinox for sale under $5 000

As you can see, the 2010 Prius had already experienced a great deal of depreciation when we bought it. The red star indicates the year (2016) we bought our 2010 Toyota Prius. Please enjoy the below graph showing four different years of Toyota Prius (2010, 2012, 20) and their corresponding depreciation rates from 2010 to 2019: Since we’ve owned our 2010 Toyota Prius the longest, I’m going to use it as the example car today. You guys, I have a degree in creative writing, not math… ). Fear not, I’ve got lots of graphs to help us understand this (and I do mean “us” because I had to spend quality time graphing it up in order to understand this depreciation curve and explain it today. Although cars experience an initial burst of depreciation, the key to getting a screaming deal is to wait for their depreciation to essentially flat line.Ī low mileage, relatively new used car is still going to experience a lot of depreciation, which makes it a fairly bad deal for you, the savvy car purchaser. Frugalwoods, I thought you just said to buy used cars!?! I did, but here’s the thing, don’t buy low-mileage, relatively young used cars. The rate of depreciation is going to vary by make, model, and year of vehicle, so I’d say these percentages aren’t universally applicable, but they do serve as a guidepost. Then, for the next four years, you can expect your car to lose 10 percent of its value annually. The value of a new vehicle can drop by more than 20 percent after the first 12 months of ownership. You can see why this is an issue with cars what with their tendency to age and add mileage. Ok so depreciation is when something loses value over time because it gets worn out. I know I just said “depreciation” 89 times, so let’s pause for a dictionary refresher:ĭepreciation: a reduction in the value of an asset with the passage of time, due in particular to wear and tear. Our 2010 PriusĬonversely, when you buy a used car, you’re letting someone else assume the burden of depreciation and you’re capitalizing on the slower, more stable depreciation rates of an older car. The minute you drive a new car off the lot, it’s worth a lot less money because it’s no longer brand new. Why did we buy such old cars? New cars depreciate at an astronomical rate and when you buy one, you bear the burden for all of this depreciation. Having kids does not necessarily mean you need a huge car. We easily fit two carseats in the backseat of the tiny Prius (there’s even room for a box of books and toys between them).

We saved 64% off the new sticker price on our Prius and 58.5% off on our Tundra.We paid cash in full for both of these vehicles, which means we don’t have car loans and thus, aren’t paying interest.Apparently we like to buy cars in April.For comparison, had we instead bought a brand new 2018 Tundra, we would’ve paid circa $37,000.For comparison, had we instead bought a brand new 2016 Toyota Prius, we would’ve paid circa $24,880.2010 Toyota Prius: purchased in April 2016 for $8,995 at 96,854 miles.Let me start with a quick rundown of what my husband and I drive our two kids around in: The Frugalwoods Fleet-O-Vehicles Our 2010 Toyota Tundra Today we’ll explore why and what you can do to save yourself and your money. Low-mileage, relatively young used cars are often a bad deal.

Used chevy equinox for sale under $5 000