Car Buying Tips Guide 1

(Barry) #1

you keep a vehicle, the lower its cost per mile will go. TIP: In general, the CPM is lower on used cars, and the longer^


Depreciation is one of the largest factors in CPM, and it is based on manyfactors. It is also non-linear—see chart (create). By that I mean that it


usually starts out quite steep (hence the old saying that a car losesthousands of dollars of value when you drive it off the lot), then it levels out (^)
till about 70,000-80,000 miles. It steepens again as the car approaches six-figure mileage. Once past 100,000, however, it begins to level out again. In
fact, it can end up that there’s almost period of time, or such a slight amount it’s not really worth worrying about, no depreciation for a fairly long (^)
on high-mileage vehicles.

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