How much value do new vehicles lose and how quickly?
"I want to buy a new car, but I've heard horror stories about how much value they lose. I don't want to end up upside-down on a loan.
How much value do new vehicles lose and how quickly?"
“Ranges vary, but, in most cases, you lose 11% of the value of the car as soon as you drive off the lot.
Over the first year, the car will lose 20% to 30% of its value. After that, expect to lose about 15% per year in depreciation. In 60 months, your car will be worth less than half of what you paid for it.
Depreciation is one of the top reasons that critics state regarding car loans. While a cool car is exciting, it’s rarely a savvy financial decision.”
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Browse by topics
What others are asking
How can I tell if a repair shop recommended by my insurer is gouging me for accident repairs?
I recently got in a single-car accident. Most of the damage looks cosmetic, but the insurance company's preferred auto body shop gave me an estimate for $7,500. My deductible is $2,000, and I think the damage is far less than that. How can I tell if a repair shop is gouging me?
Apr 22, 2021
Am I insured when I drive other people's cars?
I occasionally drive my neighbor's Jeep. I think they have insurance on it, but does that mean I'm covered when I'm driving it?
Jul 20, 2021