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.

Used Cars for Sale in Highland Park

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Details Compare Save Images Pre-Owned 2018 BMW 4 Series 430i xDrive AWD KBB Market Price $32,899 Selling Price $30,895 Savings $2,004 Details Confirm Availability Details Compare Save Images Certified Pre-Owned 2017 Honda Pilot Elite With Navigation & AWD KBB Market Price $36,980 Selling Price $35,933 Savings $1,047 Details Confirm Availability Details Compare Save Images Certified Pre-Owned 2017 Honda Pilot Elite With Navigation & AWD KBB Market Price $36,988 Selling Price $34,808 Savings $2,180 Details Confirm Availability Details Compare Save Images Pre-Owned 2017 Mazda CX-5 Grand Touring With Navigation & AWD KBB Market Price $24,899 Selling Price $22,809 Savings $2,090 Details Confirm Availability Details Compare Save Images Pre-Owned 2017 Acura MDX w/Technology Pkg With Navigation & AWD KBB Market Price $33,980 Selling Price $31,809 Savings $2,171 Details Confirm Availability Details Compare Save Images Pre-Owned 2013 Toyota Camry LE KBB Market Price $15,899 Selling Price $13,809 Savings $2,090 Details Confirm Availability Details Compare Save Images Certified Pre-Owned 2019 Honda Pilot EX-L AWD KBB Market Price $36,899 Selling Price $35,833 Savings $1,066 Details Confirm Availability Details Compare Save Images Pre-Owned 2018 Acura RDX AWD AWD KBB Market Price $30,899 Selling Price $28,409 Savings $2,490 Details Confirm Availability Details Compare Save Images Certified Pre-Owned 2019 Honda Pilot EX-L AWD KBB Market Price $37,899 Selling Price $31,809 Savings $6,090 Details Confirm Availability Details Compare Save Images Pre-Owned 2018 Acura TLX w/Technology Pkg With Navigation & AWD KBB Market Price $30,899 Selling Price $26,409 Savings $4,490 Details Confirm Availability