How much does your car depreciate each year in the United States?
The cost of a new car can drop by more than 20% after the first 12 months of ownership. Then over the next four years, you can expect your car to lose 10% of its value every year.
From the moment a car leaves the dealership, it begins to depreciate and loses value year after year. In other words, if you paid $50,000 for your new car in 2010, your car will likely be worth between $2021 and $25 a year depending on its depreciation.
According to a Carfax report, a new car loses 10% of its original value just by removing it from the original dealership, and its value continues to decline every year.
According to industry experts, the cost of a new car drops by about 20% in the first year of ownership, and after the first year by 15% compared to last year.
According to Carfax, this could be the value of your car in five years:
– 5 year old car sold for $40,000 16,000 when new would cost dollars.
– A 5 year old car sold for $30,000 would be worth $12,000.
This means that, on average, a new car is only worth 40% of its purchase price after five years.
We must not forget that vehicle depreciation depends on the make, type of vehicle, number of miles traveled and other factors, so these figures are general estimates.
Some vehicles are priced higher than others, and this is due to various situations, which may include the number of annual sales, corporate brand changes, new models, dealer resales of used vehicles, etc.
Tips to help prevent your car's value from dropping
1.- Keep mileage usage in a modest range, because the factor that greatly reduces the value of a car is usage: 10,000 miles per year should be enough.
2.- Keep the vehicle in good condition as its condition also affects its initial value.
3.- It is advisable to buy a car with the best technical achievements and safety standards.
4. Choose brands like Honda and Toyota, which also have a long-standing reputation for reliability and durability, two other good qualities that can slow depreciation.
5.- Keep all evidence of regular maintenance, they can also add to the resale value, so having receipts to prove oil changes, tire rotations, fluid drains and other services is an advantage.
6.- A car that has never been in an accident will cost more than one that has been in an accident.
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