Everyone knows that cars lose a lot of their value as soon as they are driven off the lot. But few people realize that this presents a cost-saving opportunity for the savvy shopper.
According to Edmunds data, the first year is the most devastating for most new cars. Take an average midsize sedan selling for $27,660 as an example. In the first year, the car loses $7,419 of its value. However — and this is where the secret comes in — the next year only sees a $1,114 drop in value. In fact, in years two, three and four, it only loses $5,976. That's right — in those three years put together, it loses less than in that first year.