Purchasing a car is a great feeling, all the paperwork has been completed and all you are waiting on is someone handing over the keys to your ride new ride. Unfortunately, as soon as the car is driven off the lot your car’s value will start to depreciate.
Car depreciation is defined as the value of a car over time. Depreciation not only affects new cars but used ones as well. After the first month, the value of a car tends to drop by about 10%. Since each vehicle is unique in terms of use, make, and age, it might be difficult to pinpoint exactly how to decrease value over time. The being said, a rough estimate of the depreciation value can be calculated by the purchase price minus the current fair market value. However, taxes and dealership fees may also not be as accurate.
A car can depreciate in a variety of ways. As with most equipment, wear and tear on the machine brings the value down. Some sellers may also disguise the true financial worth of the car by detailing the vehicle or by focusing on its positives rather than the negatives.
Here is a few popular factors that may affect the value of your car:
- Miles and age
- Vehicle purpose and use
- General maintenance and service
- Number of owners and if the vehicle has been in an accident
On the bright side, not every car will decrease at the same rate. Some models may still maintain higher values due to popularity, lifetime value, or even color can play a role in the price. From the moment you purchase the vehicle to the care in between, there are a few ways to help maintain its worth. Assess the resource below for more information about the resale value of a car.
Courtesy Of Chrysler Factory Warranty
