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?"

Answer
“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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Eric Schad
Answered on Jun 18, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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