Hello Mabs!
Why do car prices depreciate in value so quickly? I’m planning to sell my car soon and am looking for another vehicle, what should I look for?
Mabs Answers
It’s no secret that cars lose value fast, typically around 10% the moment you drive off the dealership floor. But why does this happen? Well, as much as we all love shiny, brand-new cars, the market doesn’t see them the same way once they’re no longer “fresh out of the box.”
Some vehicles depreciate faster than others. Luxury cars tend to lose value the
quickest, while sedans usually depreciate faster than SUVs. Cars from brands known
for reliability and quality, however, tend to hold their value better. How you maintain and drive your car also plays a significant role in how much value it retains.
Regular servicing and gentle driving can make a difference when it’s time to sell.
If you’re planning to sell your car and buy another, keep depreciation in mind. Look for cars that are known to hold their value, especially if you plan to sell within a few years.
Do some research on brands and models with strong resale value. Ultimately, picking the right car and taking good care of it will help you get the best return when it’s time to sell.
