Chart: Residual Value – Prices of Top Used Cars and Trucks
The depreciation of new cars:
| Retail Value of New 2010 Model | 2007 Model | 2003 Model | |
| Chevy Silverado 1500 4×4 Ext. | $ 32,285 | Lost 22% | Lost 56% |
| Toyota Camry | $ 22,650 | Lost 21% | Lost 58% |
| Ford F-150 4×4 SuperCab | $ 31,125 | Lost 31% | Lost 63% |
| BMW 325/8i | $ 40,900 | Lost 34% | Lost 67% |
| Saab 9-3 Arc / 2.0T | $ 31,135 | Lost 42% | Lost 69% |
| Ford Taurus SEL | $ 27,995 | Lost 61% | Lost 81% |
On average, the prices of vehicles dropped 11.7% each year for the first three years, and only 7.6% each year for the following four years. You can find the best value by buying vehicles that are three to seven years old. It is more difficult to obtain extended maintenance plans for used cars older than seven years or with more than 70,000 miles.
One more thing to consider is where you’re buying the used car from: In my experience the average price when buying from a car dealership ends up being higher than what buyers end up paying to private car owners. Also, one third option would be to purchase a used car from a repossessed car auction. Prices at these places can be up to 70%-80% less than the average market value for used cars of most brands. Here’s some more information on repossessed cars for sale, if you’re interested.