As most people know, new autos depreciate the moment you drive them off the dealer’s lot. But did you know that not every vehicle depreciates at the same rate? Well, get comfortable because I have a story to tell…the depreciation story.
Buyers of new cars and trucks are the people most effected by depreciation. The average vehicle loses 20% of its value after one year. Bad news for the new auto buyer, good news for the used auto buyer. However many people are not concerned with depreciation because they buy new autos so they don’t have to deal with someone else’s problems.
Some brands are known to retain their value. Other brands lose more of their value more quickly. Some types of vehicles, like pick-up trucks, retain more of their value than cars from the same manufacturers. SUVs also tend to retain more value than sedans in the current market. When a vehicle model receives a drastic overhaul, the old version usually depreciates at a higher than normal rate.
To help your new vehicle maintain as much as its value as possible remember to follow the manufacturer’s maintenance recommendations. Also, keep it clean inside and out. Keep the finish nice and shiny by having it waxed a few times per year.
At We Drive we can steer you to new vehicles that retain their value. If you want a great used auto, we can help you use depreciation to your advantage and help you get a great used auto value. And always drive safely!