Buying a new vehicle is a great feeling. When everything has been signed and you finally have the keys to your new ride it is easy to forget about depreciation. That being said, depreciation begins as soon as the vehicle roll off the lot.
Car depreciation is determined by measuring the loss on a vehicle. Depreciation happens over time and with general wear and tear on a vehicle. In fact, during the first four years of owning a car, the value drops by about 15% each year. On the bright side, there are a few things you can do to limit depreciation, which, in turn, will also increase the resale value of your car.
Determining your vehicle’s value might be difficult to pinpoint due to a variety of reasons. However, a rough estimate for depreciation can be calculated by subtracting the purchase price from the average market value. If you are trading in a vehicle, taxes and dealership fees may not be accurately counted because they vary by dealership and state.
As with most heavy equipment, a vehicle won’t be worth as much as it is new. However, be aware that some sellers may try to disguise the worth of the vehicle by detailing the vehicle for the showroom or highlighting its pros and not presenting the negatives. From the moment you purchase the vehicle to the time it is being sold, there are a few ways to help maintain its resale value. If you are interested in learning more, check out the resource below. It provides a few tips for maintaining the resale value.
Courtesy Of Chrysler Factory Warranty