How Fast Does A New Car Depreciate In 2011?

HOW SMART Is BUYINGA NEW CAR REALLY? MAKING THE RIGHT CHOICE THERE ARE TW O SCENARIOS THAT WILL HELP THE VERY MINUTE THAT A NEW CAR IS DRIVEN OFF THE DEALER'S LOT, IT LOSES VALUE YOU DETERMINE IF BUYING THAT BRAND NEW CAR IS RIGHT FOR YOU 2. IF YOU INTEND TO TRADE IT IN OR SELL IT WITHIN A COUPLE OF YEARS, THE RESALE VALUE WILL BE NO WHERE NEAR THE PRICE WHEN IT WAS BRAND NEW, BUT MAYBE IT'S THE JOY OF 1. IF YOU ARE CERTAIN THAT TWENTY YEARS DOWN THE ROAD YOU WILL STILL BE ENJOYING THIS DREAM CAR OF YOURS THEN BUYING A LONG NEW CAR ISN'T A BAD CHOICE. SHORT ALWAYS HAVING THE TOP OF THE LINE VEHICLE IS HOW YOU ROLL. HOW FAST WILL YOUR CAR LOSE VALUE? BELOW IS THE ESTIMATED DEPRECIATION OF AN BRAND NEW $25,000 AVERAGE PRICED NEW SEDAN AND HOW FAST VALUE IT DEVALUES OVER TIME* TMV IS THE TRUE MARKET VALUE: THE AVERAGE PRICE YOU PAY AT THE DEALERSHIP 1 MINUTE OLD $22,500 -$2,750 91% VALUE DEPRECIATION TMV AS SOON AS YOU DRIVE THAT BRAND NEW CAR OFF OF THE LOT IT WILL DEPRECIATE $2,750 1 YEAR OLD $18,750 -$6,250 81% VALUE DEPRECIATION TMV BY THE END OF THE FIRST YEAR THE CAR VWILL HAVE DEPRECIATED $3,500 2 YEARS OLD $16,500 -$8,500 69% VALUE DEPRECIATION TMV BY THE END OF THE SECOND YEAR THE CAR WILL HAVE DEPRECIATED $2,250 3 YEARS OLD $14,520 -$10,480 58% VALUE DEPRECIATION TMV BY THE END OF THE THIRD YEAR THE CAR WILL HAVE DEPRECIATED $1,980 4 YEARS OLD $12,487 -$12,513 49% VALUE DEPRECIATION TMV BY THE END OF THE FOURTH YEAR THE CAR WILL HAVE DEPRECIATED $2,033 5 YEARS OLD $10,614 -$14,356 40% VALUE DEPRECIATION TMV BY THE END CF THE FIFTH YEAR THE CAR WILL HAVE DEPRECIATED $1,873 ADDING UP THE LOSSES ON AVERAGE, A NEW CAR LOSES 9% OF ITS VALUE THE MOMENT THE PAPERS ARE SIGNED, THE WHEELS START DURING THE FIRST FIVE YEARS THE AFTER FIVE YEARS THE CAR IS WORTH ROUGHLY 37% OF WHAT YOU PAID SPINNING AND THE CAR LEAVES THE CAR DEPRECIATES BY AN AVERAGE OF DEALER'S LOT. 10% TO 15% EACH YEAR. FOR IT AT THE DEALERSHIP. $$$$$ $$ THE FAST RATE OF DEPRECIATION: $25K AFTER FIVE YEARS, A $25,000 NEW SEDAN WILL HAVE DEPRECIATED AN ESTIMATED $14,386. $20K $15K $10K 1 MINUTE = -$2,750 $5K $0 3 4 YEARS *DIFFERENT MAKES AND MODELS OF CARS HAVE DIFFERENT RATES OF DEPRECIATION. THIS IS AN ESTIMATE. SHOWRCM SOURCES: CARPRICE.COM BANKRATE.COM EDMUNDS.COM L OG I C CAR VALUE YR