How much does a new car depreciate at the moment it is bought?
2006-12-05 13:29:20 · 5 answers · asked by charles m 1 in Cars & Transportation ➔ Buying & Selling
You will lose 20% the second you sign the dotted line for a new car. You will lose at least 10 to 15% the same time next year and 10% the year after that. That's why it makes so much sense to buy a three to four year old vehicle. The big depreciation hit is mostly gone and you can still have a great car for peanuts compared to new. Check out KBB or NADA -- pick out a vehicle and follow the retail value over a few years. It is incredible how much the value plunges over a three year period.
2006-12-05 14:06:49 · answer #1 · answered by Anonymous · 0⤊ 2⤋
Depreciation on a "used" car would be different than new.
The used car may not have depreciated at all depending on the type of deal you got. If you bought it under market value you may actually have positive equity. If you got a bad deal, you may have lost thousands instantly.
When you drive a new car off the lot it will depreciate depending on "what new car you bought." It depends on the markup on the vehicle from the get-go and other various factors. I'd say typically you would lose a few thousand dollars when driving the new car off the lot because the dealer will only give you what they could obtain the vehicle for at wholesale (not the same price you paid when you left the dealership). Again, that all changes though depending on whether or not you're asking about new or used vehicles, and what type of vehicle it is.
2006-12-05 21:39:59 · answer #2 · answered by Ross P 2 · 0⤊ 0⤋
I was told by a loan officer it is 10-15% the moment its driven off the lot.
2006-12-05 21:32:20 · answer #3 · answered by Verizonsuxx 2 · 0⤊ 0⤋
i own a repair shop,and it looses around 10 percent the minute you drive it off ,even if you turn around and bring it right back,,it means its been titled and that cuts the value down on it,but that's the average,,some cars loose more ,it all depends on the car,and the model,,good luck,,i hope this help,s,and have a merry x-mas.
2006-12-05 21:37:24 · answer #4 · answered by dodge man 7 · 0⤊ 0⤋
About 20% of the dealers price,and it does not have to leave the lot.It loses the value as soon as you sign all the paperwork that says you own it.
2006-12-05 21:36:01 · answer #5 · answered by david b 4 · 0⤊ 0⤋