Why Do New Cars Lose Value So Quickly: Depreciation
What is Car Depreciation? Car depreciation is the difference between a car’s value when you buy it and when you come to sell it. As soon as you drive your shiny new car away from the garage, it already loses around quarter of its value. Anyone who has tried to sell their new car back to the dealership can certainly vouch for this rather rapid depreciation in their car’s worth. This drop in value varies between makes and models, but typically is between 15-35% in the first year and up to 50% or more over three years. Consider this: You