New cars lose value at alarming rates during their first few years. That brand new vehicle driven off the lot immediately drops thousands in value. After a year, it’s worth significantly less than purchase price despite being barely used. This steep depreciation continues through years two and three, with the vehicle shedding value faster than most owners expect. But this dramatic value loss doesn’t continue forever. At a certain point, the depreciation curve flattens considerably. Vehicles reach an age where they still have plenty of useful life but have already absorbed most of the steep early depreciation. This sweet spot…
The Vehicle Age Where Depreciation Slows and Value Stabilizes
