Car Buying Articles

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.


Use the code below to embed this infographic:

Graphic Only 620 x 4176 (Only embeds the graphic part of the page with a source link to the host page)

Calculator Only 620 x 740 (Only embeds the flash calculator with a source link to the page that hosts the content)

Full Graphic and Calculator (Embeds both files with a source link to the page that hosts the content)

Comments

  • busrental busrental Posts:

    group transportation i must say that a new car lose his value is more then a 2nd hand car.

  • 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?

Leave a Comment
ADVERTISEMENT

Featured Video

ADVERTISEMENT

Get Pre-Approved for a Car Loan

up2drive

Get Pre-Approved for a Loan


Car.com

Credit Problems?
We can help you get Financing!

ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Have a question? We're here to help!
Chat*
Chat online with us
Email
Email us at help@edmunds.com
*Available daily 8AM-5PM Pacific
Phone*
Call us at 855-782-4711
SMS*
Text us at ED411