What Is Depreciation On A Car?

Car depreciation is the loss of value on a vehicle that starts the moment you drive a new car home to Chicago. There are things you can do to slow your vehicle’s depreciation, such as routine maintenance, and reducing the amount you use your vehicle. Most vehicles lose between 20% of their value within the first year, and 60% or more in the first year. Your vehicle’s trade-in valuealso depends on your vehicle’s popularity, the brand’s reputation as reliable or unreliable, etc. Depreciation slows after the five-year mark, making used cars of four to five years a smart buy for Arlington Heights car shoppers. How is depreciation calculated when you drive home a new-to-you car? Find out below!

How is Depreciation Calculated?

The following factors determine depreciation on a car:

• Vehicles don’t depreciate at the same rate each year. New cars lose the most value in the first year of use (around 20%); by year five, a car will have depreciated to 60% of its original value.
• Many new vehicles come with an estimate of residual value after x amount of years. Choose a brand with a reputation for durability and reliability as those cars depreciate slower than cheaply-made vehicles.

Speak with a member of our finance team for more information on how to choose a model that will suffer less depreciation.

Do Used Cars Depreciate?

The surest way to circumvent car depreciation is to buy a used or certified pre-owned vehicle. Cars depreciate the most in the first five years, making a five-year-old car with low mileage a great buy for smart Gurnee car shoppers.

If you want a new vehicle but don’t want to lose money with inevitable depreciation, then a certified pre-owned vehicle is a great option. These vehicles must meet stringent quality standards to qualify, ensuring that you’re getting a like-new vehicle without the high costs of buying new.

Browse Our Pre-Owned Vehicles at Muller Honda Pre-Owned

Buying used is the best option if you want to avoid car depreciation. Browse our selection of pre-owned vehicles for good deals on popular models in the Morton Grove area. Our finance department can help you settle on a finance plan that works for your budget. We’re here to help you shop smarter with our car buying tips and tricks. Contact us today with any further questions.

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Details Compare Save Images Certified Pre-Owned 2017 Honda Pilot Touring With Navigation & AWD KBB Market Price $34,899 Selling Price $29,401 Savings $5,498 Details Confirm Availability Details Compare Save Images Certified Pre-Owned 2018 Honda Odyssey Elite With Navigation $34,595 Details Confirm Availability Details Compare Save Images Certified Pre-Owned 2017 Honda Pilot Elite With Navigation & AWD KBB Market Price $33,799 Selling Price $32,495 Savings $1,304 Details Confirm Availability Details Compare Save Images Pre-Owned 2015 Buick Enclave Leather With Navigation $19,995 Details Confirm Availability Details Compare Save Images Pre-Owned 2012 Honda Odyssey Touring With Navigation $14,595 Details Confirm Availability Details Compare Save Images Certified Pre-Owned 2016 Honda Odyssey EX-L KBB Market Price $24,899 Selling Price $20,801 Savings $4,098 Details Confirm Availability Details Compare Save Images Pre-Owned 2018 Chevrolet Colorado 4WD Z71 4WD KBB Market Price $32,499 Selling Price $31,795 Savings $704 Details Confirm Availability Details Compare Save Images Certified Pre-Owned 2018 Honda Pilot EX-L With Navigation & AWD $30,895 Details Confirm Availability Details Compare Save Images Certified Pre-Owned 2018 Honda Pilot EX-L AWD KBB Market Price $34,899 Selling Price $28,801 Savings $6,098 Details Confirm Availability Details Compare Save Images Certified Pre-Owned 2018 Honda Pilot EX-L AWD $30,912 Details Confirm Availability