September 6, 2014
Depreciation on a new car is approximately _________% in the first year? Why should you care?
Depreciation on a new car is approximately _________% in the first year? Why should you care?
Its approximately 20% the first year of ownership. You should care because that is money you never get back that just vanishes, you should not buy new cars for this reason, buy good cars with a few years under the belt that the depreciation has kicked in, then drive those until they fall apart.
Right again, Garrett! That $30,000 new car can very easily be worth about $24,000 (20% loss) one year later. Buying new cars often provides you a one way ticket toward financial impoverishment.
Listen to Garrett. When buying a car, do your research and consider a quality 3 or 4 year old car (purchased from a private party if possible). Get it checked out and then own it for a very long time. Your bank account will thank you! Learn more by going to the buying a car tab on this website.