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Depreciation: the biggest cost nobody sees
How cars lose value, which ones hold it better, and how to use that when buying.
Depreciation is the difference between what you pay for a car and what it's worth when you sell it. You don't write a check for it, but it's often the largest single cost of owning a car, especially a new one.
What affects it
- Age: the steepest drop is usually in the first few years
- Brand and model reputation for reliability
- Mileage and condition
- Market demand for that type of vehicle
- Big changes, like a redesigned model or new technology
How to use it
- A lightly used car lets the first owner absorb the steepest drop
- Check current used prices for 3- and 5-year-old versions of the car you're considering, using several pricing guides
- Keeping a car longer spreads depreciation over more years
General information for car buyers, not financial advice. Costs vary by location, driving and market. Easy Auto Compare isn't a dealer, lender or insurer and takes no referral fees.