Depreciation Infographic: How Fast Does My New Car Lose Value?

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Depreciation Infographic: How Fast Does My New Car Lose Value?


The Bad News — and Some Good News — About Depreciation

The very minute that you drive a new car off a dealer's lot, it loses value. That's just a fact of life, and the infographic below gives you a roadmap of depreciation milestones. But depreciation doesn't mean you shouldn't buy a new car. In fact, if your plan is to drive the wheels off your car, then depreciation has no effect on your purchase. But if you do intend to trade it in, you need to be smart about the resale value of cars, and here's the key: Not all cars depreciate at the same rate. You can compare the depreciation for cars you're thinking about buying by using Edmunds True Cost to Own tool. Now, on to a step-by-step look at how fast new cars can lose their value. Buckle up.

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  • j_thom123 j_thom123 Posts:

    This is great, but considering that the useful life of a vehicle is 8 to 10 years it would make sense to calculate (or at the very least explain how to calculate) the lifetime depreciation of the vehicle.

  • Wow, what a bunch of lies. A new car depreciates 20% the minute you leave the car lot.

  • cdtdot cdtdot Posts:

    Why is it then that a new Suburban fair price for LTZ is about $56k and a 2008 with 75k miles is $26k trade-in $28 private party. The calculator predicts $20k. That's over a 30% difference. These clearly aren't depreciating as fast as claimed.

  • cdtdot, not all cars depreciate the exact same amount. Which is why it is smart to consider that in the true cost to own.---------- thrstonlovi1, try it sometime: drive off the lot with a new car and then drive right back on and ask them what they'll give you as a trade on a different car. You can't buy a used car with 1 mile of use on it for that much of a drop but they are going to pay you a lot less than you just paid if you want to sell the car back to them. ----- j_thom123, that's the key (and Clark Howard would agree) keep the new car 10+ years and the depreciation slows to the point you get your money out of it.

  • pstonier pstonier Posts:

    Include freight charge in starting price?

  • gsemike gsemike Posts:

    I've always found that the depreciation on new cars is overstated. I just did a search for 2010 Base 370Zs on iseecars. $20,600 with 40k on it. That's a far cry from 12 grand

  • stever stever Posts:

    Retail asking prices are different from trade-in prices. I'd be happy to sell my used cars at dealer retail asking prices all day long. B)

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