What are some advantages and disadvantages to depreciation? It's for an upcoming article in the next few weeks and I need help
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As in cars depreciating? I’d look at a demand/cost curve. That pretty well explains it in simplest terms.
Yeah
Advantage: you can get an expensive car for cheap. Disadvantage: You will probably sell it for cheap aswell and not make any money
Pros
get expensive cars dirt cheap
sometimes the best bang for buck cars
Cons
selling it is a no go
there is a reason to why the car depreciates (low demand, low build quality, way too expensive from factory, the way it drives etc.)
putting money into a hugely depreciated car is sometimes stupid (tuning it, restoring it) -high maintenance costs on some cars
So moral of the story. Buying a depreciated car don’t be just amused by the price. Look deeper into the car’s history, check if it’s the car for you, and if you have enough money to maintain it yourself. Because usually expensive high performance cars depreciate the most.
The advantage is when it happens to the previous owner. The disadvantage is when it happens to you.
Comments
As in cars depreciating? I’d look at a demand/cost curve. That pretty well explains it in simplest terms.
Yeah
Advantage: you can get an expensive car for cheap. Disadvantage: You will probably sell it for cheap aswell and not make any money
Pros
Cons
-high maintenance costs on some cars
So moral of the story. Buying a depreciated car don’t be just amused by the price. Look deeper into the car’s history, check if it’s the car for you, and if you have enough money to maintain it yourself. Because usually expensive high performance cars depreciate the most.
The advantage is when it happens to the previous owner. The disadvantage is when it happens to you.