Trying to determine how much I should pay for a used vehicle. Took a brand new unit for a price of $52000, nothing down and looks like the residual would be around ~$20000 after 36 months. So that's about 39%. Yikes.
If the vehicle is being sold used at $40000, can I use the 39% as my depreciation curve to determine a good starting point would be? IE;
Car is 2018 and is 20 months old (date of registration is April 2018)
Brand new = 52000
Buyout = 19760
So for 36 months, pay 32240 which is 10746.67/12 months = 895.56/month
20 months = 17911.20
52000-17911.20 = $34088.80
Starting point @ $30,000ish for a $40,000 asking price but fair for all would be $35k @ full asking? Assuming no discounts.
Does my math work? Car in question is Stinger GT Limted. Helping a 'friend' look at getting something newish.
PS. Surprised I got out of school if math is wrong.