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    March 12, 2021

    Useful information

    Car depreciation off the lot


    Car depreciation: what affects the cost reduction?

    How much value does car loose off lot? Any auto in the process of operation has the property to lose its price, it should be noted that in different vehicles, this figure will differ significantly. When choosing a new auto, we often do not think about how much we can sell it in the future, for example, 3-5 years after the start of its operation. Therefore, today we will consider in detail the question: “How much will the auto lose in aging? ” and “How to reduce such costs to the auto owner? ”

    Information that everyone needs to know

    How much value does car lose off lot? In the past, most auto owners bought cars new and later used them for decades. Whereas today, many cars are bought and operated for an average of 4-5 years. The costs of auto owners for such aging will vary significantly. Someone manages to sell a five-year-old auto at a price of 50-60% of the original, and someone can not help out for his auto and a third of the cost at which it was purchased. The depreciation of new cars off lot depends on a number of reasons: technical condition, specific brand and model. For example, evaluating the market, we can say that the car loses value driven off the lot. That is, in five years it will be impossible to get 50% of the initial price for such a vehicle. But reliable Japanese hatchbacks, station wagons and sedans perfectly retain their value, which in the future, when changing the car, reduces the costs of auto owners.

    • What is the cost of the distance traveled or kilometers traveled? It is unreasonable to assume that the cost of a car ends only with the cost of fuel. We hope that every car owner knows that the auto, from time to time, needs to be serviced and repaired – this is called new auto depreciation off lot. However, many people do not understand the meaning of this word. Let’s give an example: many people mistakenly believe that after driving 3,000 km this month, while spending $ 50 on auto repairs, this is the cost of car wear, which is not the case. Let’s start with the simple: every auto needs to be serviced, by the term “car maintenance” we mean those jobs that can be predicted in advance. They do not end with the replacement of oil and filters, over time you need to change the spark plugs, antifreeze, gearbox oil and the like. And also with the years and mileage there is a general wear of the car, ie the older the vehicle, the more effort and expense is required to maintain its good appearance and condition. In addition to the above factors, the price of the car is also affected by: maintenance, repair, tax, insurance, market value.
    • How to reduce depreciation of new cars off lot? If the car is in critical condition, no advice will help him, the only way out – overhaul. But to prevent such cases, you should visit the service station in time, keep the car clean and use it carefully.