Car Depreciation Rate
If you're selling your car, one factor you'll need to keep in mind is depreciation. The less a car depreciates over time, the more money you'll get to put toward a new one. Then, you'll want to think about a vehicle's value when you go to buy a new automobile.
We'll go over the car depreciation rate below. Read through our informative guide, and don't hesitate to contact us if you have any questions or use our tool to find out how much your car is worth in a few easy steps.
How Much New Cars Depreciate in Value
When you buy a new car, it'll start depreciating the moment you drive off the lot by about 10%. By the end of the first year of ownership, a new car will lose about 20% of its value and about 15% each year from that point on.
The car will continue to depreciate in value after that. In fact, after about five years, your new car will lose about 60% of its total value. By 10 years, your car will lose about 90% of its original value.
Car Depreciation Cheat Sheet
- 1 year of ownership: Your car will be worth about 80% of its original value.
- 5 years of ownership: Your car will be worth about 40% of its original value.
- 10 years of ownership: Your car will be worth about 10% of its original value.
Why Some Cars Depreciate Faster Than Others
While the numbers above are estimates, there are some vehicles that may depreciate at a greater rate than others. For example, if a vehicle has a less appealing brand name and fewer options, they can depreciate by about 50% in its first year.
If you get a car that has a low MPG rating, then it won't hold its value due to the extra costs of buying gas. If it's a flashy luxury vehicle, it may not be as valuable down the road. Or, if the car isn't as reliable as others, then it may depreciate faster.
How to Combat the Car Depreciation Rate
Unfortunately, depreciation is inevitable in every automobile. However, there are ways to slow down this rate.
You can buy a used car that's three to five years old. This way, the previous owner has already dealt with the bulk of the depreciation. If you keep the car past 10 years, then depreciation will no longer be a factor.
You'll want to buy a vehicle that's a popular color (like white or silver) with options that'll add value.
Examples of such features are:
- Power seats and windows
- Leather upholstery
- Mobile device compatibility
- All-wheel drive
Plus, while you own the vehicle, you'll want to keep the number of miles you drive as low as possible. This will help increase resale value.
Furthermore, you'll want to keep up with routine maintenance. Make sure all the service records are up to date and repair any damage as quickly as possible.
With these tips, you'll have a car that'll hold its value, making it easier to sell or trade in for a new ride.
Contact Us for More Information
If you'd like more information on car depreciation rates, then contact us at FreeVehicleValues.com.
When you go to sell your car, we'll help with the process. We'll look at all aspects of your vehicle to give you up to four fair cash value offers. You'll receive the maximum value and can use this to put toward the purchase of a new or used automobile.
Don't wait! See how much your car is worth now!