Depreciation Has Already Occurred

It’s a pretty common complaint on new car buyers that a vehicle depreciates very quickly when its new – as soon as it leaves the lot in fact. A vehicle will lose up to 11% of its value the money it leaves the lot, and up to another 20% over the course of the first year. That’s almost 30% of its value, gone, within the first year! A $30,000 investment is now only $20,000. Buying a used vehicle, one that’s only a little over a year old, saves you all that value.

A Used Vehicle Saves You Money

As mentioned above, a used vehicle will not have the massive depreciation that a new vehicle suffers in a single year, as it’s already happened. Because of that when you buy a vehicle that’s used, you’re buying one that’s priced much more fairly! You’re buying that $30,000 vehicle at only $20,000-25,000, if buying one that’s barely a year old. And that’s a value that won’t depreciate so quickly, either! You’ll hold on to that investment longer.