Car Leasing 101 - Car Depreciation - Disadvantages of Buying a Car

Car Depreciation

One of the worse disadvantages in buying a new car is the cars depreciation value. A cars depreciation (define: depreciation) is rapid within the first few years. Vehicles lose around 45% of their value within the first three years, however this can vary among different vehicle makes and models. Most luxury cars hold a higher value against depreciating costs over the first few years, but it’s nothing you can escape from. You can attempt to reduce vehicles value that you pay for, and in sense minimizing the depreciating value through thorough preparation before negotiating with the dealers.

What determines the depreciation value of a car? A few factors go into determining the depreciating value of a car or truck or any type of vehicle for that matter. Consider the model’s popularity, perceived quality, supply and demand of the car.

Regardless, after the first few years the car will take a huge hit in its residual value.

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