Question

CarMax has guaranteed to pay $500 for ANY used car - no matter how old or in what condition. You want to wait as long as possible to sell and get the most bang for your luck! How long will you have to wait until your car is worth less then $500 so you can rip off CarMax? Either show your OR write an explanation of how you solved the problem. ( This is NOT a true deal from CarMax - they offered me $ 300 for my 2002 Toyota Corolla in March.

Answer 1

After I looked up some quick information, your car loses 15-25% each year. After 5 years, it goes to only 37%. So, a car that would cost 20000 would be valued at around 7k after 5 years. So, in the first 5 years, it lost 14k. Also, a 1999 Corolla goes for 2.5k, and that's nearly 20 years. So, I'm just going to go with, based off these numbers, probably 25-30 years...if it still works by then.
Also, if you get in a heavy accident the next day, making the car unusable, you rip off your friend. The first scenario only applies if the engine works well and no accidents were on the vehicle either.