Immediate Depreciation: As soon as you drive a new car off the dealer's lot, it loses some of its value instantly. This initial depreciation can be as high as 10% to 15% of the vehicle's original price.
Regular Depreciation: Over the remaining months of the first year, the car continues to depreciate gradually. The rate of depreciation varies based on several factors, including the make, model, mileage, and overall demand for that particular vehicle. On average, you can expect a further depreciation of around 10%-15% during this period.
The combined effect of immediate depreciation and regular depreciation over the first year can lead to a total loss of value of around 20%-25% in most cases. However, it's worth noting that depreciation can vary significantly between different models and types of vehicles. Some cars hold their value better than others, and depreciation rates can be influenced by market conditions, regional variations, and economic factors.
If you're planning to purchase a new car, it's essential to consider the potential for depreciation and factor this into your budget and long-term ownership plans. Depreciation is an inherent part of car ownership, and understanding how it affects your vehicle's value can help you make informed financial decisions.
