Monday, August 12, 2013

how does depreciation affect the type of car that you purchase?

luxury cars depreciation on SOARING depreciation levels of a range of luxury vehicles has led to a ...
luxury cars depreciation image






you have a choice of buying a luxury car or a standard model for the same price. how will...


Answer
All depends on demand, you could buy a $1 million car but if nobody else want it, it is worth $0 instantly, you would need to do a demand research.

If you had a choice, would you buy a luxury car or a standard car for the same price?




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How do you think depreciation effects the type of car purchased? Give a specific example.


Answer
the main reason ppl buy luxury cars, is to look classy and rich.
b/c when you think of BMW, you automatically think $$$.
so when you see someone driving a BMW, first thought that comes to mind is that, "man he/she must be rich!".
but if a luxury car, were the same price as a normal standard... there really wouldn't be a class system.
if you saw someone with a BMW, and the guy next to him had a Ford Focus, you wouldn't automatically think better of the BMW driver. cause essentially their both the same price.
and in the end, trying to buy that "fancy car", really means nothing, cause it's not more valueable than the avg. car.




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