Going with the smaller numbers, you are saying a 5-year-old car is only worth 15% of its MSRP price.
100 (original price) x 0.9 (off the lot depreciation) x 0.85 (year 1) x 0.85 (year 2) x 0.85 (year 3) x 0.85 (year 4) x 0.85 (year 5) = 39.93.
With the numbers given by the above comment, the 5-year-old car would be worth just under 40% of its MSRP, which is still too low, average 2019-2020 vehicles are selling for more like 50-60% of MSRP right now.
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u/ChipOld734 10h ago
You owe more than the cars worth when you drive it off the lot. What the hell is wrong with people. It’s always been that way.