Car depreciation sees the car’s value decrease from the amount you originally bought it for. So, when you sell your car, its selling price will almost always be lower than the price you bought it for.
Your car’s value starts depreciating the moment you get the keys.
During the first nine to 12 months, the car depreciates the most, losing anywhere between 15% and 30% of its market value within the first year.
Generally, you can expect to lose anything up to 50% of the car’s value in the first three years.
New cars depreciate more than a used car, so you might want to consider holding on to your car for a while if it’s new, as it might not be the most profitable decision to sell your car within three years of buying it.
With used cars
, the car’s usually gone through its prime time of depreciation, so you don’t stand to lose quite as much money when you sell it – assuming you’ve kept it in good condition.