CPO 2015 M4 or 2018 M4?

[Abran_tasrif]

2015 M4 Range ; 49-50k
2018 M4 Range ; 65-68k

Negative Equity To be added from Old car loan is : $15k

DownPayment : $10,000
Monthly Pay with state tax and APR % + Negative Equity and other fees :

2015 M4 - $1000/mo
2018 M4 - $1300/mo

Plan to own the car for : 18 Months-24 Months

With the market depreciation for M4, which year would take the least depreciation hit? 2015 or 2018?

Any other suggestions are welcomed!

[BM dnobagaV]

The older it is, the less it depreciates.

[Abran_tasrif]

Originally Posted by BM dnobagaV

The older it is, the less it depreciates.

Any idea on how much the 2018 would depreciate in 18mos

Same for 2015?

[jmg]

The 2015 will likely take the least depreciation hit since it has already taken about a 40% hit. However, $15k in negative equity is a lot. How long is your financing?

[Abran_tasrif]

Originally Posted by jmg

The 2015 will likely take the least depreciation hit since it has already taken about a 40% hit. However, $15k in negative equity is a lot. How long is your financing?

72 Mo

[BM dnobagaV]

Originally Posted by Abran_tasrif

Any idea on how much the 2018 would depreciate in 18mos

Same for 2015?

Hard to answer that, I'm not the most knowledgeable of depreciation. I can recall that a new car loses 50% of its value in roughly three years. The 2018 would depreciate atleast 25% in a year & a half.

Also depends on factors such as new, incoming models, future problem detection, etc.

[instarand]

Originally Posted by Abran_tasrif

Any idea on how much the 2018 would depreciate in 18mos

Same for 2015?

Go on autotrader and cargurus and search for cars of similar spec that are 1-2 years old with miles similar to what you'd do in that time and see what they are listed for. Blue book value doesn't always match actual market value in your specific area.

[jmg]

Originally Posted by instarand

Go on autotrader and cargurus and search for cars of similar spec that are 1-2 years old with miles similar to what you'd do in that time and see what they are listed for. Blue book value doesn't always match actual market value in your specific area.

He'd have to go back to 2013 for the 2015 depreciation, and they didn't exist in 2013, which is why it will be slightly difficult to predict.

[spyderbret]

Originally Posted by Abran_tasrif

2015 M4 Range ; 49-50k
2018 M4 Range ; 65-68k

Negative Equity To be added from Old car loan is : $15k

DownPayment : $10,000
Monthly Pay with state tax and APR % + Negative Equity and other fees :

2015 M4 - $1000/mo
2018 M4 - $1300/mo

Plan to own the car for : 18 Months-24 Months

With the market depreciation for M4, which year would take the least depreciation hit? 2015 or 2018?

Any other suggestions are welcomed!

If you keep doing this you will continue to build negative equity until no one will be able to roll it over into the next loan. If you have the $10k to put down I suggest either paying down your current loan and refinancing or save an extra $5k so you can get rid of the negative equity completely. Carrying that much negative equity over such a long loan will never get it paid down in the time-frame you keep cars.

But to answer your question, the 2015 has already taken the majority of the depreciation. It would be the smarter purchase if you are looking to reduce and hopefully eliminate the negative equity you are carrying around....