How much your car is devalued each year in the United States

How much your car is devalued each year in the United States

The value of a new vehicle can decrease by more than 20% after the first 12 months of ownership. Then, for the next four years, you can expect your car to lose 10% of its value annually.

How much your car is devalued each year in the United States

From the moment a car leaves the dealership, it begins to devalue and loses value year after year. In other words, if you paid $50,000 for your new vehicle in 2010, probably in 2021, your car will be worth between $25 to $35,000 depending on its price.

A new car loses 10% of its original value simply by taking it out of its home dealership,and its value continues to depreciate each year, according to a Carfax report.

According to industry experts, the value of a new vehicle falls by about 20% in the first year of ownership and after the first year, 15% of its value year on year.

This may be the value of your car after five years, according to Carfax:

A 5-year-old vehicle that sold for $40,000 when it was new will be worth $16,000.
A 5-year-old vehicle that sold for $30,000 will be worth $12,000.

This means that on average a new car is worth only 40% of its purchase price after five years.

We must not forget that the depreciation of a vehicle varies according to the brand, the type of vehicle, the number of miles traveled and other factors, so these figures are general estimates.

Some cars maintain a higher price than others and that has to do with the different situations that can include the number of annual sales, changes in corporate of the brand, new models, resales by used car dealers, etc.

Tips to prevent the value of your car from devaluing

1.- Keep the use of miles in a modest range, because a factor that depreciates the value of a car is the use: 10,000 miles a year should be enough.

2.- Keep the car in good condition, as its condition also affects its original value.

3.- It is advisable to buy a car with the best technological advances and safety standards.

Choose brands like Honda and Toyota, which also have a long-standing reputation for reliability and durability, two more favorable attributes that can slow depreciation.

5.- Save all the tests of regular maintenance, these can also increase the resale value, so having receipts documenting oil changes, tire rotations, liquid discharge and other services is an advantage.

6.- A vehicle that has never had an accident will be worth more than one that has.

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