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Parent Category: Automobil

Millions of consumers buy new and used cars, trucks, vans and other vehicles every year. A vehicle purchase can be expensive; most need a loan. There are many considerations to take into account: new or used, make, model and year, just to name a few. An important part of buying a vehicle is to understand how automobile depreciation is calculated, though depreciation levels differ for each vehicle.

 

Depreciation is the rate at which a vehicle loses its value in the marketplace. With the exception of collector autos, once a vehicle has been sold, it is rarely sold again for the same price. This means when you purchase a new car, the car immediately loses some of its value when you drive it off the dealer's lot. It also means when you buy a pre-owned car, even if it is in like-new condition, you will not pay the full sticker price.

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