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.”
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