You bought a brand-new car, drove it off the lot, and within a year, its value has already dropped significantly. This phenomenon, known as depreciation, is a harsh reality for every car owner. Your car’s value starts to decrease the moment you drive it home, and understanding why is key to making a smarter investment and getting the best possible price when it’s time to sell.
This article will break down the primary factors that cause a car’s resale value to decline. By knowing these influences, you can better protect your investment and even slow down the rate of depreciation.
The Unavoidable Factors: Time and Mileage
Some factors that cause a car’s value to drop are simply out of your control. They happen to every vehicle, no matter how well you care for it.
- Age: This is the most significant factor. The moment a car leaves the dealership,
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