Why Do Vehicles Quickly Lose Value? | OK Carz
New vs Used Car Depreciation
There are multiple things to consider when deciding which vehicle to purchase. One of the biggest concerns many car shoppers have is car depreciation. Why do cars quickly lose value? How fast will a new vehicle depreciate versus a used one? Here’s what you should know when it comes to vehicle depreciation.
How New Vehicles Depreciate
Like equipment, vehicles experience wear and tear over the years. Even if you take great care of your vehicle, depreciation will still occur simply because of age and the fact that it now has an owner, which considers the vehicle “used”.
[ READ MORE: 5 Tips for First-Time Car Buyers ]
Unfortunately for new car buyers, vehicles depreciate the quickest when they are bought new. In fact, the vehicle depreciates the very moment that new car leaves the lot. After just one year of that vehicle being owned, it is worth roughly 20% less than the value it was purchased at. Then, it’s estimated that the vehicle will depreciate about 10% every year after for four years. Yikes.
How Used Vehicles Depreciate
Thankfully, that process slows down the older a vehicle gets. While a car will continue to slowly depreciate up until the value of the metal itself, buyers will receive more value by buying a used model than a new one.
Are you looking for a vehicle that gives you the best “bang for your buck”? Contact us at OkCarz for assistance in finding a used vehicle that matches your driving needs. Ready to start shopping online? Check out our large and current inventory right from the comfort of your own home! If you have any questions on any of our vehicles, don’t hesitate to reach out.
Index
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