Why Do Vehicles Quickly Lose Value?

Nov 19, 2020

Rear angle of cars parked in a parking lot

New vs Used Car Depreciation

There are multiple things to consider when deciding whichrnvehicle to purchase. One of the biggest concerns many car shoppers have is carrndepreciation. Why do cars quickly lose value? How fast will a new vehiclerndepreciate versus a used one? Here’s what you should know when it comes tornvehicle depreciation.

How New Vehicles Depreciate

Cars inside of a dealership

Like equipment, vehicles experience wear and tear over thernyears. Even if you take great care of your vehicle, depreciation will stillrnoccur simply because of age and the fact that it now has an owner, whichrnconsiders the vehicle “used”.

[ READ MORE: 5rnTips for First-Time Car Buyers ]

Unfortunately for new car buyers, vehicles depreciate thernquickest when they are bought new. In fact, the vehicle depreciates the very momentrnthat new car leaves the lot. After just one year of that vehicle being owned, itrnis worth roughly 20{e443ec709150c73baf180d3d8e0a41d703fa022f47b2bb5516b57735b7c7f19e} less than the value it was purchased at. Then, it’srnestimated that the vehicle will depreciate about 10{e443ec709150c73baf180d3d8e0a41d703fa022f47b2bb5516b57735b7c7f19e} every year after for fourrnyears. Yikes.

How Used Vehicles Depreciate

Thankfully, that process slows down the older a vehiclerngets. While a car will continue to slowly depreciate up until the value of thernmetal 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 “bangrnfor your buck”? Contact us at OkCarzrnfor assistance in finding a used vehicle that matches your driving needs. Readyrnto start shopping online? Checkrnout our large and current inventory right from the comfort of your own home!rnIf you have any questions on any of our vehicles, don’t hesitate to reach out.