Understanding How Cars Depreciate

Unless you immediately drive it into a garage, seal it for 50 years, and cross your fingers that future generations will consider it a classic, your new car is going to depreciate in value. They’re not exaggerating when they say a new car loses a big chunk of its value the moment it’s driven off the lot — that’s the truth. Depreciation is a cold, hard fact whether you’re buying a new or used car. Like all cold, hard facts about economics, there are a lot of complicated variables at play. Depreciation is a complex process that can change a lot depending on the circumstances, but understanding how it works can give you at least a little bit of an advantage when you consider buying a new or used car.

How vehicles Loose Value

Depreciation impacts the value of a car between the time you purchase it and when you look to sell it to someone else. It affects the value of new cars and used cars alike, but the factors that determine the rate of depreciation can differ. For a new car, the rule of thumb is that a new car generally loses 10 percent of its value the moment it leaves the lot. That means, if you drove your $25,000 new car to the end of the block and decided you didn’t like it anymore, the most you could hope to get back from the dealership would be $22,500 — even if you never removed the plastic from the floor mats. In general, new cars lose 15 to 25 percent of their value each year for the first five years you own it. However, the rate of depreciation can be even worse for cars that have lower brand-name appeal and fewer options.

Supply and Demand
The depreciation of used cars also depends a great deal on the supply of used cars in the marketplace. Obviously, the more used cars that are available to buy, the less valuable your car becomes. You don’t have any control over market forces like basic supply and demand, but there are some factors that give you a little bit of control over your car’s depreciation rate. For example, buying a new car with a lot of options and features will help buoy your car against the forces of depreciation, as well as keeping the mileage as low as possible before selling. Even simple things like keeping your car clean and detailed can play a role in keeping its value a bit higher than expected. Neutral-colored cars hold onto their value better than cars painted in garish colors, also.

It’s a fact of life that the next car you buy will depreciate in value, but having a little knowledge about how depreciation works and what affects it can help you make a more-informed decision the next time you buy.

Cars That Are Built To Last

Buying a car is a big investment — one you want to last for a long time. Are you buying your teenager’s first car? Looking for a second vehicle for your household? Or, do you need a car to replace the one you have? No one wants to purchase a car that stops functioning a year or two later. Save yourself a lot of hassles by picking a used car that’s affordable, safe and reliable. How can you find the kind of car that will stand the test of time? What are some keys to look for when you’re shopping used lots or auctions?

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What Do I Need To Go To An Auto Auction?

If you’re in the market for a car and considering attending a public auto auction, you may be wondering what to expect. Going to an auction isn’t like going to a car dealership or buying a for-sale-by-owner car. It’s a unique experience that has specific requirements, and you have to understand those requirements in order to be prepared to participate. To help you prepare for the experience and feel confident to bid and buy, here’s a look at key car auction tips to remember.
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Easy Steps To Finding The Perfect Used Car

New cars depreciate rapidly. That’s why, for most people it makes sense to find one a few years old. With care, it’s often possible to pick up a lightly used vehicle for almost half price. However, with the average used car transaction close to $20,000, it’s still a big outlay. That’s why a little nervousness is only natural when venturing into the used car marketplace.

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Common Mistakes To Avoid At Auto Auction

Auto auctions can be a great way to acquire a quality car for an affordable price, but only if you do it right. That said, if you’re planning to attend a live auto auction, please note that there are right and wrong ways to do so. Being prepared and knowing what to expect can lead to a very positive experience, while going in unprepared has the potential to spell disaster.

This post will take a look at some mishaps that consumers often make and how to avoid common auto auction mistakes.

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Advantages Of Buying A Fleet Car

When you’re in the market for a used car, looking at fleet vehicles for sale only makes sense. Whether they’re former rental cars, corporate travel cars or fleet vehicles of another kind, the cars you can find at fleet auctions are typically in just as good of condition as the cars you’d find in a used car lot — often better. What’s more, cars in fleet car auctions come with several distinct advantages that can make them preferable purchases. What exactly are the perks you can expect from fleet auctions? What advantages will you find in buying fleet vehicles for sale? Here’s a look:
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Auto Auction Buying Guide

Have you decided to ditch the dealership and instead take the public auto auction route for your next vehicle purchase? Good for you! Live public car auctions can be a great way to save some money and get a quality vehicle — not to mention, they’re also a cool event to experience. Plus, you won’t run into any high-pressure salesmen. It’s important to note, these local auto auctions for the public have the potential to be a tad difficult to navigate if you’re not prepared, as there is a certain amount of risk in purchasing via this route. That’s why we’ve put together this handy buying guide. Here’s a look at some helpful suggestions the next time you’re browsing the auto auction inventory at a local event in your area.
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Why Public Auto Auctions Are Better Than Used Car Dealerships

Public auto auctions permit consumers to potentially find quality previously owned vehicles at great prices. These prices are often so good that used car lots and other retailers can’t come close to competing with them. Combine the affordability aspect with the large number of vehicles that are auctioned on a given day, and there’s usually a good amount of inventory to choose from if you’re in the market for such a car — making the shopping experience more convenient on many fronts.

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5 Things To Know Before Attending Your First Live Auction

Whether it is a government or police auction, public auction or online auto auction, it’s these types of automobile auctions that are ideal for consumers looking to buy a new car at a discounted price. However, if you’re in the market for a new car and are exploring the possibility of going the auto auction route, there are a few essentials to know first before showing up to the auction site:

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