* Make and Model: Some brands hold their value better than others. Luxury cars often depreciate faster than more mainstream brands.
* Vehicle Type: Trucks and SUVs tend to depreciate slower than sedans or sports cars.
* Mileage: Higher mileage at the end of the first year will result in greater depreciation.
* Market Conditions: Economic downturns or a sudden influx of new models can impact depreciation rates.
* Features and Options: Cars with more features and options may not depreciate as quickly as more basic models.
While 10-20% is a common range, some cars can lose significantly more, especially if they're high-end or in high demand at the time of purchase and then subsequently lose market share. It's not uncommon to see luxury cars lose 25% or more in their first year.
