Why Cars Lose Their Value So Fast
A car loses about 10% of its value as soon as it's driven off the lot. And within the first three years, that number goes up to 50%. Depreciation - the rate at which that happens - is one of those numbers everyone in the automotive world thinks about including consumers, automakers and the massive used car market, which made up somewhere around 35.2 million in 2022 - compared with 13.8 million new cars. But the Covid-19 pandemic turned the used car market upside down - constrained production and supply chain shortages sent prices skyrocketing, and increased for about two consecutive years, unprecedented for the industry. Those odd times have led to lasting changes, and industry insiders say it is likely to stay that way.
01:22 - Intro: - Why cars depreciate so fast
01:31 - Chapter 1: - How depreciation works
05:16 - Chapter 2: - Down from there
07:39 - Chapter 3: - Unprecedented times
09:13 - Chapter 4: - Why cars are worth more today
Producer: Robert Ferris
Editor: Darren Geeter
Animation: Christina Locopo, Jason Reginato
Senior Managing Producer: Tala Hadavi
Additional footage: Getty Images
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Why Cars Lose Their Value So Fast
The question isn't "Why do cars lose their value so quickly?". It's "Why are they so overvalued when they're on the lot?".
I’m not in the car business but I assume the dealer has a little bit of overhead. Property lease, utilities, labor costs. I highly doubt any of the folks working at the dealership are working for free. But I may be wrong.
Dealership revenues are comparable to manufacturer revenues.
Part of it is the markup on the lot. MSRP builds in the minimum expected commission that sales people take Then there is the transaction price which includes delivery charge, taxes and fees.
Especially in the last few years since they are approaching twice the price .
Capitalism. Car makers are in the business of making money. If people will pay it then they can sell it for what they want. No one is forced to buy a car.
Now is definitely NOT the time to be buying a car. Average car cost $47K?! That's insane! Check your ego at the door - you need a vehicle to get back and forth to work, not to impress anyone. An auto finance rate of 7%+ is an insult to anyone with excellent credit. No thanks. Those new cars can sit on the lot and rot away for all I care.
I'm with you. I don't care how much it costs to keep my current cars running. I'll drop new engines and trans if necessary I refuse to buy a new car.
Yeah, Im glad I keep seeing this message because I want a new car, but man these prices are crazy
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Got a 1984 Toyota 20 years ago for $ 800, it's valued now at $ 1600 by the insurance company. Still going strong with over 300,000 miles....
40 year old car, how is it allowed on road , for daily use. Fitness, pollution etc.
@@Reddylion your math...... it's a 40 years old car man
He bought a 40 year old car 20 years ago.
@@Reddylion As long as all of the legally-required equipment is operable and it passes emissions regulations applicable to the year it was built, why wouldn't it be allowed on the road? I've driven 10-year-old cars that were falling apart and 40-year-old cars that looked like they just came off the showroom floor. The only real limit to a car's lifespan is how long the owner wants to keep putting money into it. I daily drove a car from the 1980s when I was in college in the late 2010s and still have it.
@@bwofficial1776 I think they meant that it should pass modern day emissions regulations. Which makes sense. We don't want old cars spewing volatile organic compounds and heavy metals into the air.
What's weird is how the car holds its value even after it's test driven by 10 people and has 100 miles on it - until it's bought.
Nah floor models are discounted
That’s on you though… You can negotiate that away or if they wont budge, walk away.
@@threepac walk away from any car that is not your friend. Sometimes it’s a car that means her car to find a car.
Almost universally demo vehicles get a few thousand off
@@g.4279 New cars on the lot that have ~100 miles on them are still sold as new cars - She's talking about certain ones that dealers use as "test drive" cars and I agree, I wont pay a new car price for something that has more than 15-20 miles on it.
For me, a true value of a car is how long i can drive it without having major problems after its paid off. The longer i go without a car payment the more value that car will have to me.
Amen to that! I paid my car off in 2017. I will drive it until the wheels fall off.
A very reliable, affordable used car can do that. I guess the answer is much easier to an engineer
End of story.@@celieboo
Haven't had a monthly car payment for 25 years now. Would much rather pay for repairs every so often. Even $1000s is cheaper overall than the $1200/mth of payment + insurance, etc. On a new one.
And vehicles known for their high reliability do have slow depreciation rates. Totally worth getting something like a Toyota Camry or Honda CRV brand new as buying them used will not save you much money and they will last 200,000+ miles so you won't be needing a new car for a LONG time.
When I hear "we want to be more careful on how we sell cars" I really hear: "we want to control supply so we can control prices". In Mexico, this insane hike in prices has opened a window for chinese car makers, at least 6 chinese brands have entered the market since 2020, offering cars with a 20% - 30% lower price than the "traditional" brands.
Mexico has cheaper cars than the United States because they don't have a federal agency run by climate hippies telling car companies what they can and cant do.
As people love to say in North America, it's the free market 😂
I traded in my 2011 Camaro SS in July 2022. I paid $18,900 for it in 2018 with 29k miles on it. The dealer gave me $17,200 for it with 67k miles on it. They turned around and sold the car for $22,400 within weeks. Unreal... I almost got what I paid for it 4.5 years later and they sold it for more than what I paid.
I find it hard to believe that’s the actual price you paid for that car in 2018. Sum is not adding up here
We can avoid some of this by allowing manufacturers to sell directly to consumers. The middleman markup at dealerships is an unnecessary cost to consumers and they provide no real added value that the manufacturer couldn't do equally well for less. Start selling vehicles closer to the wholesale price and that first year depreciation will slow.
Where will you take the car to be serviced / warranty if there are not any independent dealers?
@@bobroberts2371A service center should be established. Just no dealers, only service.
Plus having to deal with trashy and scummy dealerships won't be a thing. Looking at you, HONDA
@@christianj252 So why don't you open a dealership and do a better job ? If so many people are unhappy with dealer treatment, you can be making $$$$ for no effort. 100 % chance you won't open a dealership.
@bobroberts2371 Don't you guys have independent auto mechanics? There's 4 I know of right in my neighborhood of NYC, a city infamous for people not driving. There should be trice that outside the city where ya guys are
I'm starting to see dealerships pile up to pre pandemic levels with inventory. Dealers will have to start reducing prices to sell cars.
If buyers were smart and not impulsive and emotional, they would wait until that dealership had to drop the price of the a given car. Dealerships don’t make money when the car is sitting on their lots.
Not in my area. Cars fly off the shelves.
@@TheJiggs666 decent deals are out there but you have to look and be prepared to go to another city or state.
Still mark up above msrp everywhere here
Exactly. It seems like CNBC is doing a story based on a 6 month ago market. Dealers are overflowing with cars, and they're all completely screwed.
I got a Honda civic 2016 touring in July 2020 for 18.5k CAD after tax with 70000km. Got into an accident (which wasn’t my fault) in February 2022 Insurance valued my vehicle value at 21.5k after tax with 90000km. I didn’t want the car back, so I did a total loss write off and I got 18.5k for the DAMAGED car with 90000km. My damaged car with more km, was worth the exact same 1.5 years later. And by that point I already paid off 1/2 the car, so I basically drove the car for free for 1.5 years. Covid was insane
But you paid for the insurance already, so it was not for free
@@thesmartaspiranttsa5845you need to pay for the insurance anyway.
insurance price was higher too after covid so the insurance company in general make profit even paying you that amount of money, i look this like a win/win for you and the insurance company.
@@thesmartaspiranttsa5845that’s true
@@Erick-fx3ebit my province, insurance is publicly funded and rate actually went down during COVID. Overall it was a win win.
My truck is 29 years old. People have approached me at least a dozen times to ask if I wanted to sell it. A lot of potential buyers drive through the neighborhoods, looking for old trucks. I noticed that if I replace the tires, I get a lot of attention from buyers.
@@MickJonesHogSmacks - Ford Ranger 3.0
I drive a 1989 toyota truck, standard cab 5 speed and I get that a lot. People leave notes on the wipers all the time. Flag me down in traffic shouting out offers... "I'm gonna need about $25K" usually gets a chuckle out of them.
my friend got a 5-speed manual ford ranger (i forgot the year) from a private mechanic. he told me that they used sell them for 7 or 8 grand before 2020 but he bought his last summer for 12 grand. apparently everyone in that area now wants an old reliable truck.
If she’s old but still holds keep her as long as she’ll run 👍
Try owning a 29yr old "daily driver" here in Wisconsin and see how many buyers will be knocking on your door. Except for the crickets in the back yard, the only sound will be that of the "junk collector" walking up to your front door!
They depreciate so fast because they aren't worth nearly what they are worth. These guys are selling you a loan, so they can charge you whatever they want. Some people don't care as long as they can afford the payments.
You said it with interest rates declining in coming months people will be financing vehicles again no matter what they cost
Lies again? Car Tushy Football Soccer
Because people are willing to pay WAY more than the car is actually worth because it is "new." It hasn't "lost value" because what was making the price higher wasn't "value" but status.
Its worth what was paid. Some people want a new car that is not someone else's problem. Their time is worth more than the cost of repair. And the first 36000 miles on a car are mostly trouble free. So a new car buyer. 4 oil changes. Sell car. Buy new one.
@@BarryObaminable You are running on the assumption that a used car can't also be reliable. And if someone is buying a new car and are selling when they get to 36K, they are making the worst of all decisions money wise... They are just eating all of that depreciation... Ouch... I mean, that's great for everyone ends up who buying their used cars which are probably still in really great shape and cost much less... So there is that silver lining. ;-) I mean, if they are going to do that, at least consider leasing... ;-)
@@BarryObaminable Never quite understood that sentiment. You’re going to spend 5,6,700 a month on a new car to avoid a 1k repair every 3 years? The math ain’t mathing to me, but to each their own.
@@desiv1170 No I am not. Plenty of used cars are reliable. Some new cars are not reliable. But zero new cars have been driven 28,000 miles without even changing the oil. Its simply, as I said, that some people, their time is worth more than saving money. Its no different than doing your own oil changes. Some people have plenty of time, not much money, so they do their own changes. Other people, have something they would rather do than carve out a 2 block to doing an oil change and cleaning up.
@@BarryObaminable Probably a different discussion, but: "But zero new cars have been driven 28,000 miles without even changing the oil." I doubt that... Knowing people... Someone(s) will do that... That being said, remember I am not saying it is a bad thing. Last two cars we bought were new... But it is because we wanted those particular model/years... I fully admit that we would have been totally fine with a newer used car and saved money... I'm not saying it is bad... It's just a choice... But when I buy new, I'm not thinking I am getting a more reliable car... I know why I am paying more... New cars lose "value" the first couple of feet after being driven off the lot... There's no "value" loss in that couple of feet driving other than status of being new... When the dealer drives it to you, it doesn't lost $8K in value. But once you turn right off the lot, $8k gone.. ;-)
Very good information, I’m keeping my 1994 Nissan Maxima until it falls apart.
It won’t if you take care of it . I have a 95 Nissan Maxima I bought for $660.00 . It’s been my tank . Meanwhile my friends Volvos are literally falling apart
In 2020, I was looking for my first new car I know I know whatever I wanted a new Corolla hybrid. The dealership WAS A NIGHTMARE telling me I had to pay the 500 hold then it would come in 3 months, then it was expected on me to finance it with them for about 3-7 grand more than what it was worth. I said no and they tied to sell me a used 2018 model for almost the same price. It was insane, so to this day I happy own a used 2005 Honda accord and it runs like a dream
I have the 2006 accord, it’s great. I got an aftermarket CarPlay and backup camera that are superior to what our 2022 Toyota has.
Might be wise to keep your 2000-2010 car. The electronics in them are quite straightforward in them, so it's easy for a tech to chase down an electronic fault and replace cheaply. The new stuff is awful, but they work great until they don't.
This is why you keep it absolutely as long as possible.
Its worth Buying a brand new vehicle, if you are keeping it for life.
Mother nature usually has better ideas. In "cold country" with plenty of road salt available, you would be lucky to have a vehicle that DIDN'T look like '' Swiss cheese" after 10 yrs!
My Manger is trading in his 2018 truck for a new full size truck that's 60k even though there's nothing wrong with his current
@@mikehurt3290small pp energy
The reason for an immediate drop in a new car’s value when driven off the lot is the dealer markup that’s embedded in the MSRP or negotiated sales price. It’s the same if you tried to sell your house soon after you bought it. You’d instantly owe 5% in realtor commissions plus taxes and recording fees, etc.
Lies again? Expensive Car Ezlink Card
Not quite pal. Cars have always depreciated. A home can appreciate over time. Cars do not. In general that is. You have those classic exceptions.
🙌 Thank you for teaching the world
Tell that to Zillow or other stock companies investors buying up single family homes.
@@user-kz3db9zw5zall of them stopped over a year ago. Zillow lost a ton of money flipping houses.
Depreciation is simply a reflection of the car's decreasing market value over time. While it might seem like a loss, a car serves its purpose in providing transportation and utility, and its enjoyment might not always be directly correlated to its financial value
Yes. As an owner to various classic cars, they are not supposed to be for daily use. It is inconvenient
The car manufacturers and big dealers prop up the price of vehicles when they are in possession but then when your in possession suddenly the vehicle is not worth what you paid for it..
Yes. That's because it's a used car when it's in your possession. Did you know that the state makes more profit on sales tax than most dealers make on the sale of the vehicle (depending on the state)?
They found out that there was no profitable market for cheap cars. They only serve to keep prices down on their Japanese and Korean competition. Those prices went up solidly after Ford stopped selling sedans, especially the $10k base Focus and Fiesta.
Blame Obama his EPA is the reason new cars all look like monster trucks compared to the early 2000s.
Used cars didn't increase value. The dollar shrank in value as the government went on a multi-trillion dollar spending spree. It made it appear like housing, the stock market, food, fuel, and basically everything were going up when in fact it was just the value of the dollar shrinking. It's also why the government insists the economy is great when nobody feels that way. 1/3 of the value of money has vanished since before the pandemic, so we are all earning 1/3 less in actual value.
Very well said.
Printing money saved us from economic depression. Unfortunately, maybe a little too much was printed. Better to have inflation than most of us literally lining up for bread and soup. Some of us do now, but most of us are doing ok even with higher inflation.
Not to mention China’s Zero-COVID shutdowns and Russia’s “special military operation” affecting global trade movements, on top of corporations taking advantage of a profit-price spiral. If anything it was limited supply that made prices shoot up while we barely held on with long-needed bottom-end wage increases.
@@jimbochoo3316alot of people are lining up for bread.
@jimbochoo3316 this comment is the banality of evil. Defending the printing of money in the manner of which it's been done while using hypothetical scenarios as an alternative while completely ignoring the root of the problem is evil. In the nicest way possible, G F Y.
Car manufacturers can only hold that "Let's make less cars for higher profit" mentality for so long. Like the guy said, somebody will give in and go after that customer who only wants a basic car for less money.
There is very little money to be made on a "BASIC" vehicle. All the money is in the EXPENSIVE options!
That's why companies love trucks they can somehow justify charging 50k-100k for trucks and for some reason people keep buying
@@TheOzthewiz BYD says otherwise.
@devoe4096 you mean the company propped up by the Chinese government?
Most car companies have dropped their base models!
During the end of pandemic I got into an accident. My insurance deemed my car as totaled. I was surprised to find out that my 12 year Honda CRV had a Blue Book value of $15K. Helped out a lot buying a brand new Subaru at full price. Was fortunate to find a local dealership that had 3 cars delivered that day I called.
Same thing with my sister’s CRV! It was worth more than double what I thought a car that was 2 generations old would get; large part of why she bought another.
@@epbrown01 I would have bought CRV again, but at the time, dealerships were empty. I really lucked out getting a Crosstrek. I did research and it was ranked number one for its category. Love the car.
@@pauldesigncomics2625could have bought used . I don’t know why Americans are so obsessed with dealerships
@@Tonyscasasame as virgin’s really are they overrated?
Dude why would you by a subaru over a CRV or Toyota. All the rankings are bought for by companies 🤡
He is so right there is a huge market for cheap cars. I seen a video all over KZhead about a Nissan car that was 15k brand new. was a stick shift NO options not even keyless entry , just a/c . PERFECT for what i want a car to be . Looked online the cheapest new Nissan in the entire USA was $17,500 PLUS taxes and delivery. I would have to wait two weeks for any dealership near me to even get the stick shift model of course that one had other options so it was 18,500 plus tax and delivery ... So i just went back to driving my paid off car. Keep the electronic crap, keep the 1,000 dollar cd player, and the 500 dollar floor mats. keep the oversized tires and rims. I want a NEW car with JUST a/c that drives is reliable gets ok gas mileage and will maintain interstate speeds for 15k or under like Nissan was advertising and letting people show off on KZhead.
Ive seen a plethora of cars like that in India, yeah they are cheap but very depressing to be in, big hole where the radio is, manual windows, a knob for the wing mirrors. Hell with some of them the A/C is an option. If you want to see what your asking for really looks like lookup Alto Base Model, youll know you have the right one when the presenter holds up a blade key with no buttons on it.
Blade keys cost $5 to replace. Key fobs cost $300 to replace.
@@goldenretriever6261 yeah bladed keys were cheaper to replace, if you have one with remote entry you need to go into the dealer to get the card re keyed(thats why you get the little code on the key so the dealer can get it remade and yeah that can cost, but your insurance may cover it if it has more than basic cover. Of course if you have the key youre talking about that has nothing in it, yeah those are $5 to replace, but those cars dont have much security like immobilizers hence, they are easier to steal. So you save on one end, but you lose on another.
@@goldenretriever6261 And a blade key car can be stolen in a few minutes leading to you complaining that the auto makers need to be sued for better security. . . .
The problem is, many SAY that they want a basic no content car but when it comes down to the NEW CAR buyer, they won't buy it. The buyer in the USED car market means nothing to NEW car makers as they don't drive the first sale. Try this in your current car to decontent it and see how long you can do it: Use only AM / FM on the radio and no navigation. If you have power windows, reach across the car to operate the non drivers window. When leaving he car, lock each door individually and use a key on the last door. Don't use cruise control. Don't use the intermittent function for the wipers.
I bought a 2023 model 3 performance for 50,990 and it was 54,490 price before I bought it with inventory sale. A few months before I bought it the m3p were selling for around 60k. I added ceramic coat, ppf and window tint. With just 1500 miles barely driven no scratches and clean inside Kelly blue book says it’s only worth 38,000 now. Image the people who bought one at 60k .
Rip
Yes owning a car is the biggest scam in America. The trick is to not fall for the trap
Well, there is a 7.5k tax credit so that will make the depreciation even worse from MSRP.
Electric cars are throwaways like cell phones
@@bocajuniors55No. #LFP battery
One thing that isn’t spoken about that also contributed to this problem was Cash For Clunkers. Removed so many used cars that probably would still be on the roads today. You’ll never convince me that greed by dealers isn’t also part of this problem. Slapping on an extra $10K just because a car is popular is greed. Bronco owners know this well.
The whole business of car sales at dealerships is dirty business. In a more perfect world, you'd be able to buy them direct from the manufacturer at a much lower price.
In turkey, for last 3 years, it worked like, you buy a car from the dealer for 50k, then you resell for 70k. people were buying all the available cars and make this, even the dealerships stop to put their car on sale, instead they sell online with these profits. because of limited supply. it ended now, but it give big negative impact on the economy
Same in Pakistan, cars were selling for a premium and the prices went up almost every month. I got a 660cc Suzuki Alto and that is now valued at 40% more than what I paid even though I used it for 1.5 years.
You know what’s a better question? Is why companies are legally allowed to rip people off who want to repair their cars and appliances rather than just replace them? The drain pump in my washer failed. It’s $100 to replace it and the washer was $600 brand new. Four cheap plastic suspension rods broke as well and guess how much those were to replace? 67.20 per cheap plastic rod. So for those keeping up that’s $368 to fix an old washer or $600 to buy a new one. That’s our disposable society that we live in it is disgusting.
I’m happy for all the folks who bought a used car for spare change and pocket lint and put a gazillion miles on the vehicle without so much as adding air to the tires. My experience with used cars is very different. My ex wife bought several used cars during our marriage. Each one was a steaming turd on 4 wheels. But I just kept reminding myself how much money we saved as I pushed the car off the road.
I’ve learned to only trust Japanese makes used, anything else is a crapshoot because they’re engineered to be needy for maintenance.
My thoughts exactly
That’s why it is important to be very discerning when choosing a used car to purchase. Always have an independent technician do a pre-delivery inspection before buying the car.
@@Oxibase .... That doesn't get rid of the farts in the seats, the cocaine residue, the nose boogers and other assorted bodily fluids casually scattered about. .... No thanks. 😳🤔😬
@@davidgarris2513 You could get it detailed. That’s what I do, if it has t been already.
Values have dropped dramatically the past 6 months and as a dealer we are not able to help as many customers due to being upside down. Add that with high interest rates is the reason dealership inventory will continue to grow. The whole time during the pandemic my store didn’t sell vehicles over MSRP and take advantage of customers. Every dealer now will offer some type of incentive so now is the time to buy. Once rates drop customers will start to lower dealership inventory which will cause dealerships to tighten up on discounts due to limited supply. I can’t believe how many people paid $5-10k over MSRP’s on these KIA’s & Hyundai’s….really unbelievable
I kinda feel March is the best time to buy. After next week there's nothing to bring in customers.
More so than the lemon explanation, I have the suspicion that the initial depreciation is the amount the consumer (at least some of them) is getting ripped off, and is contributing to the Dealership salaries.
In Sri Lanka cars don't depreciate because of the government tax and the peoples mindset. for a normal 1500cc car we pay 300% tax and for anything above that we have to pay 400% tax. Nobody sells cars for lower price than they bought no matter how old the car get. A 15 year old car that cost 2000 USD in other countries cost about 15000 USD in Sri Lanka. Most of the people in here are poor and most people use cheap indian vehicles. Cars are a luxury item in Sri Lanka.
Which is precisely why you shouldn't even be comparing your poor market to the US so your post is pointless.
poor market? how about the singapore market? their government also tax the vehicles the same way. a normal car in singapore cost over 100k. It has nothing to do with the market its all about the way that government and people think. just don't sell cars for cheap. @@tonyazzaro9593
Also it's not pointless I just want the whole world to know what kind of sh***y government Sri Lanka has. that's why i posted this comment. so not pointless. It has a point. @@tonyazzaro9593
Seems pretty good actually. Ideally private cars should not be every man's transport tool (which should be feet, bikes and public transport).
@@nummer3357 Sri Lanka is a very hot humid tropical country. Normally the temperature during the daytime goes around 35 degrees of Celsius. You wouldn't even step outside of your house if you live here. Most people have no choice other than walking on foot in that heat. They can't spend lot of money to buy a air conditioned car to travel. Do you have any idea how many people die in these Asian countries due to heat strokes? Also those bicycles and scooters are not safe. Most of the roads in Sri Lanka are so narrow and so many people who travel on bicycles die because of accidents. You won't be saying that if you lived here.
I drive a 96 Lexus and its already got maximum depreciation which I love. I don't care what happens to it which is a giant weight off my shoulders.
Same but with a brand new porsche, I guess factored in all the depreciation already though 😂
Instead pay 75k for a new but already outdated 2024 Acura MX s trim suv. It had 2017 level interior. It will be worth half in no time.
Same. Got a 2001 Lexus. I still take some car of it, but if it gets a ding or a scratch, whatever, I ain't paying money to fix that. It's a daily driver, after all.
I bought a 20 year old Audi this year, mainly because it was all I could afford that looked good. It's turning out to be a good purchase, and with some TLC, shouldnt lose much more value unless it gets wrecked.
@@addanametocontinue have a 2011 lexus gs awd. Don't drive much, I have a feeling it will be around 30 years from now. I never found a bad review about that car.
The fact CNBC needs to explain this is an indictment of the public education system.
I don't buy brand new cars because I can't afford it, but because it is an insane decision and a gigantic waste of money, it is basically like throwing money out of the window, you know what fun stuff you can do with 30'000 dollars that is A LOT MORE FUN than just driving a car that "does not bring you from A to B any faster than an used car"
Yup- we test drove a car in 21 and a 2 year old used one was more expensive than new. I asked about depreciation and the salesman just shrugged. We didn’t buy it and haven’t yet
Last November, I started looking for a new car, and the car I was looking at was about the same price used as new. So I just bought brand new to get the warranty, and a new vehicle lol
I work in insurance and have the answer, it's the same reason your insurance prices are going up, repair shops are charging on average 400% more to fix cars than pre-pandemic. That means there's a huge market for used cars to strip them for parts and resell them so almost all cars have actually appreciated as a result these last 3 years.
It's because whoever buys the used car is going to ask more than it's worth. You have to play hard ball and walk away until you get to the price you want to pay. Shop at other dealerships and tell the last one you were at that you are shopping around. Then wait for phone calls and hear them compete against each other. If you don't you will get gouged.
@Kuwaaito I appreciate the insight. I have a 19 year old camry and the shop across the street wanted $3200 to do full front suspension. I did it for $500 and got some new tools to work on cars with it. Wild what things cost these days.
If only we could get similar cars made in the 90s. Juste enough tech, but everything is simple without screens and useless stuff. A car is a means of transportation, not a flexing object.
People want bells and whistles . You may not buy most do .
Not being a smartarse - which country can you not get them in? Here in the UK many manufacturers (but most especially ones like Suzuki or Dacia) will sell you exactly that. Your basic Swift or Sandero is equipped similarly to a 90's car. In other parts of the world, older designs are still in production and sold very cheaply - but generally can't be imported to the USA or the EU for regulatory reasons. They're made.
@@Rapscallion2009 you also have MG in the UK. But cars are getting more expensive. Even VW polo start around £22k
@@AdrianMcDaid yeah, but VW are a premium priced product. yes, you get MG here. Also Kia and Hyundai and Dacia, Suzuki and a few others.
That's why I will never sell my '02 Honda.
I love car depreciation. I always bought very good cars that didn't gave me any problems for often 1/5 of the original price and still in very good condition
Or you can just steal them. You save thousands of £££££.
How did you do it? They are always falty when i buy them
@@mateusznikicik8770 I search for a good amount of time. Before I go to buy the car I look on the internet for the problems the car might have and also I know a bit of mechanics so I când see a lemon
@@mateusznikicik8770buying certified preowned helps most times and buy a car at least 3 years old. Also, buy cars that keep their value like Lexus, Toyota, Honda, Acura. The German brands unfortunately do NOT have much of a resale value because once lease is over, parts start breaking even though they are more fun to drive.
Profits from car business comes from car parts not sold cars .Especially warranty from beginning .That’s a fact.
wrong, they make record profits off car sales and are required to produce replacement parts. Most cars can be built for less just buying the parts. way cheaper!!
@@theadd_gamer1182 ye ye
Car making companys lives from Car parts its consistent income. ! They selling part for the cars sold 50 years ago don’t u get it?…. U are talking about new car sales. Car sold and then what? Pay wages for next cars and wait 2 years UNTILL someone will buy? What they gona stay hungry 🤤 and wait for the fish?? 😂
I prefer buying new over used because that way I'm writing the new cars history. As opposed to finding out what was wrong with the used one.
I used to think that way, but I turned to purchasing lease returns or certified preowned. I’ve purchased Mazdas and Toyotas this way. Saved myself 20-30% of the MSRP. They came along with the extended power train warranties. I didn’t purchase the extended overpriced dealerships warranties that added thousands to overall price.
@jamram9924, if I may ask, where do you buy your over extended warranty through the dealership or third party?
@@miggyspain3218 Costco used to sell those extended warranties. I purchased one years ago and it paid off for a major repair. However, I believe Costco stopped providing this type of warranty service. Then I understood GEICO and Progressive insurance used to sell them as well. Shop around and look for prices but also the deductibles and the parts they cover and above all read the fine print. These warranties are not cheap and as the owner, you just maintain your car and it must be documented. Otherwise, the extended warranty can void or cancel your contact.
Its only worth buying a brand new car if you are keeping it for life.
@@theshield1613 that's the plan
I have never owned a new car, and by the time I sold those used cars when I was done with them, they were suitable only for the scrap yard for parts. The last car I sold was entered in a demolition derby.
I’m pretty sure a new car owns you. I’m pretty sure Mazda owns you.
Your very smart because newer cars these days are garbage, no matter the make or model.
I bet they were real confortable...
@@Perich29 the new model, three Highland is better quality and more forward leaning than any other car. CAR.
What an idiotic comment - or did you mean to reply to someone else?@@ericB3444
My tacoma is 7 years old right now and 2 local toyota dealerships have both offered to buy it off me for 50% of what i paid for it originally. I keep telling them no.
Ok
Lol
My dad always told me, never buy a car as an investment, cause it's not one Assume it's worth $0 when you drive it off the lot and you'll always make the best decision
When you buy a new car, you're paying for the marketing, advertising, the salesman to be at the lot, the dealer markup on additional fees to nickle and dime you, etc. When you get into the realm of used cars, the market is more liquid and rational and based on specs/features from one car and one model to another. It's not so much depreciation, but rather that you're paying for the privilege of getting sold to. Just like paying for more expensive Verizon service vs their wholly-owned prepaid MVNO.
MVNO lol you must with in the industry
Right and wrong. In reality, when you buy a car you're paying auto manufacturers record breaking profit numbers, and putting money in a few select executive's pockets.
When you buy a Tesla you have no marketing, no advertising, no salesman and no markup.
@@pauld3327you pay for all the costs associated with making the car, just without the PR department and yet their cars are still expensive and one man can just arbitrarily drop the price of it without seemingly affecting the quality of the car, makes you wonder doesnt it?
@@pauld3327 yeah, you get and unpredictable bomb that can burn your home down in the middle of the night.
My Honda Fit appreciated lol bought it before the chip shortage. Whenever I went to the dealer they were like we want to buy your car back. I love it tho and will drive it until it's end.
It’ll probably keep its value well too because they’re no longer sold in the US 🥲
I bought a Toyota Tacoma a couple of years ago and gave my 2013 Fit with 78k miles to my youngest child. The Fit is a good car.
To find a Toyota Prius in 2022 was almost impossible. We paid a new price for a used car with over 20,000 miles on it and had some blemishes. But the Mileage at 51.6 to 58.3 is very impressive in a eAWD car.
I bought a Kia Seltos 2021 for 23,000 and im selling it now, 3 year Slater for 22,000 as per market value today in 2023 it was depreciated 4% in 3 years!
NO , IT DEPRECIATED, ITS THE VALUE OF THE CURRENCY THAT LOST MONEY
Carlos is right, this video is garbage, car depreciation is not a bug thing anymore. This coming from a guy looking for a used car for months.
It depends on the market for cars in your area, vehicle condition, etc. Just because you had little depreciation doesn’t mean it’s the norm. It’s definitely the exception. The video is spot-on because you have to look at the overall market for car depreciation, new or used and not the exception to the rule.
@@housepianist this video is out of touch. We are dealing with real values here regardless of location. I would easily drive out of state for a big discount if that was the case.
Are you saying your car is on the market to be sold for $22,000? Or are you saying that you're in the middle of a transaction in which your kia is being sold for $22,000. I am curious to know what the asking price is vs actual sold price.
Its a simple answer. Its not a free market. You are legally not allowed to purchase a brand new Chevy (or any other car for that matter in the US). Instead dealers have a monopoly on new car sales and can set the prices to what ever they want.
What do you mean, you're legally not allowed to buy a brand new car? I did last year. I didn't even consider buying used.
I wish people would stop saying that vehicles loose value the moment you drive it off the lot. That's very untrue. It looses value the moment you finish signing your name on the last signature line. You don't even have to put the pen down for it to have lost value.
I'd like someone do a comparison between the Covid car market and the WWII used market when no new cars were manufactured between February 1942 and resumption for the 1946 model year. During the war did used car prices go through the roof and did dealers pull the same sales tactics like recently?
Everything depreciates once it's used. The only reason houses go up is because most of the value is the property. The house itself depreciates. Property appreciates because it's in limited supply. They can't just make new property. Why would anyone spend as much for a used thing when they can get a new one for the same price?
A key reason: New models every year. If the industry went to new models every, say, three years, then a 2024 bought in late 2023 would be the latest model for three years, not one. Of course, the industry is loathe to do that. One thing we know for sure; if most new cars are sold for 10% under MSRP, that means the MSRP is at least 10% too high.
Should be titled "Why Did Cars USED to Lose Their Value So Fast". With used car prices still being sky high for the past couple of years.
Well, we’re in a unique time where supply chain constraints due to COVID straight into a recession that nobody wants to call a recession. Everything is going 100% greed due to uncertainty in our current economic situation. Five years from now everything will be more normalized.
there is no need for car dealership - according to Tesla. dealership adds little value to the purchasing process but ironically attribute to jacking up car prices.
Vehicles last longer and longer. Driving a 2010 Dodge Caravan with 210,000 miles. Still use my 1996 Explorer with 300,000+ miles. Unheard of longevity compared to cars from50's, 60's and 70's and even the 80's.
I also have a 96 Explorer EB. 4.0L engine. It has 200k But i had to put in something for the cracked head. Runs perfect otherwise. A pair of heads is $1000, if it didn't have rust I would have repaired it.
I have been driving my dad's Ford Explorer 1995 that has 155K miles on it. It has its quirks (mostly electrical) but it drives ok and I am saving a bundle from not having to buy an expensive car right now.
@@kyungshim6483 Yeah they last forever. I put in an android 7" head unit and it works good I have NAV. Had almost no problem from 150-200K. I put in K-seal and it fixed a common issue with a cracked head. Mine has all the digital toys in it. (climate, etc).
@@kyungshim6483 For some reason 95,96 v6 were extremely reliable. The V8s after that were very good.
Trying to get a car now to get myself back forth to work but in reality I’ll hop on public transportation. Dealerships were asking for way too much money to put down. The monthly payments are higher than before and your credit also pays a big factor. Working on my credit now before I decide to get the car I want.
save up and buy a used car from a private seller with cash? nothing beats having no car payment
My 2006 Honda is going strong with a CarPlay and backup camera added. I wish there were after market safety upgrades available.
A very explanatory documentary in my opinion! Depreciation is the difference between a car's value when you buy it and when you come to sell it. The demand of a car has been decreasing over the years. The general population has lost purchasing power due to cumulative inflation. Hence the importance of incentives for purchasing a car. Question: What is the highest depreciation between gasoline cars and electric cars?
Dumb question = dumb answer Max depreciation is 100%...
This is why I'll never understand people who drop 50k+ on a car regardless of "brand" just to say they have it EVEN if they can comfortably afford it 😂
That's true, though not everyone that buys a new car of course is doing so for the "look what I have" reason.
@JT_771 Do you really need a 100k truck or 70k+ BMW/Mercedes? 😅 You want reliability? Japanese and now even Koreans are there for you for almost half the price of German cars and American trucks.
@@tonyazzaro9593 Clearly I never suggested such. We're talking new cars. That Japanese or Korean car entered the market as a NEW car and certainly some for other than the "look what I have" thing.
Not everyone wants to wake up to and drive a bucket for work every morning drive. You care more about money than your own comfortably
@@PatrickGotHands There are PLENTY of reliable, brand new cars with the newest tech and accessories for under 40k 😅 You just proved my point 🤣
No need to buy a new car every so often. Buy a good car and keep it for a good long time...which results of eating less of depreciation in the long run.
We only buy new Lexus and we always pay cash. But we also keep them until they fall apart. Our oldest Lexus is 15 years old now.
I paid off my 2012 Outback in full while in college. I still own it three years later. It has 125,000 miles on it and still going strong. I quite like it, and because I haven't had a car payment in three years, it saved me a ton of money. I plan on owning it for two or three more years and buying another eight or nine-year-old Outback. I don't need brand-new cars. Those are for suckers. What is crazy is the amount of delinquencies for auto loans there are now. Rent, auto insurance, the cost of durable goods, and food, are all increasing. It's unsustainable for the vast majority of Americans. To add a $800 dollar per month cost to that mix really crushes people. Auto loan delinquencies and credit card delinquencies are on the rise, and it's not so hard to see why. It is nuts that "affordable" options still cost between $25,000 and $32,000 for a base trim no options bare bone car. It's absolutely absurd. It's not like wages are really rising anymore. Everyone is going into debt to afford new cars. Another trend is that young people are delaying getting their licenses because of how expensive cars have gotten. On top of student loan debt, adding another $30k loan to that is just untenable. It's nuts how normalized being in car debt is now.
Vehicles also depreciate less when the future price of the same newer vehicle is priced higher. For example: Jeep Wrangler priced at 40k in 2022 and in 2023 is priced at 44k. In 2023 the 2022 Wrangler will be compared to the price of the new (not the price it was bought for). Therefore the higher the price of the new vehicle versus the price paid for the used vehicle back in the day, the less depreciation. I used Jeep Wrangler because this is one of the main reasons why Wranglers hold value so well.
I spent the last 20 years buying cars at government auctions because I can`t even stand to breathe the same air as a car salesman . I get angry being talked down to.
I haven’t had any interactions with cars salesmen in which I felt any regret for simply walking away once I start to hear their nonsense.
@@n.e.g.u.s I should have told you that I worked at four car dealerships as the new car get ready car or the auction safety man and the lies I would hear the car sales man say to customers would make me sick knowing what would happen when the customers would try to hold them to their lies. "they would then say "read the fine print any verbal representations are non binding" One man got so mad when he left the dealership that he crashed his car and died in a fireball 30 seconds after driving off the lot.
@@Dwayne-mb2uj he really showed them!
@@IP0Monsturd It was awful.
The government auctions have gone insane though... I see 23 year old trucks selling for damn near MSRP when they were new.
I am not worried about my vehicle losing depreciation over time, what I am concerned more for is the "REALIABLITY"! I am not rich nor can I flex to purchase a $40-70k vehicle every year...maybe every 3-4 sure no problem but in my bracket of earning. I am trying to make my money stretch and if my current three vehicle (2014 RDX, 2019 Tacoma, 2022 GLA 300) can last about as long as my previous vehicles (2000 Tacoma, 2005 Element and 2007 GX470), which I had for 15+ years. I have absolutely no issues. As for those cars that do requires above average visits to the repair shop. If the owner can afford that lifestyle then it isn't a concern. The issue is more with nearly half of Americans that chooses to live beyond their lifestyle. The idea of driving off the lot with with a new truck or fast car only to eat ramen noodles at home is trivial. BTW, my 2000 Tacoma and 2007 GX is still running strong (I did the whole overhaul on the engine with my uncle...the only reason why my element kinda fail apart and me ended selling it is because I rarely even maintained it. It was at 235k when I sold it for $500 bucks. It would've cost me $4500 to bring it up to date but I was lazy. As for the 2019 Tacoma...I could've sold it back during the truck crisis for the same price if not a bit more even with 40k on it. However that would mean that I would not be able to have a 2019 Tacoma let alone be inspired to buy another with its insane pricing at that time.
Hundreds of people can test drive it and "take it off the lot" , and the value doesn't drop. But if you buy it and drive it around the block one time, the value drops by 10%. Got it!
Purchasing a car is not an investment, it’s an expense. So don’t even be surprised about it, deal with it
Tbh, it’s seems to be mostly just EVs that have savage depreciation at the moment. Petrol cars are doing much better, and there’s a waiting list for many new petrol cars.
Vehicle prices are seeing a correction considering that inventories are back up and in some model there is too much. One thing that could inform the discussion is the difference between wholesale price and the transaction price paid at the dealership. If you were to sell a car back to the dealership, the most you would possibly get, would be the wholesale price of a new car (minus a percentage). And all markdowns are based on that starting price.
They're only correcting for Ford, GM, and Stellantis. Toyota, Honda, and Subaru it really isn't because those are still short on inventory.
@@KNRS927You left out Tesla, it has the largest oversupply (by average time a vehicle is on the lot) of any manufacturer. Teslas have seen price drops up to 20-30 percent from a year ago.
@@dmac7128yep, that's what Elon wants, to hit that target price and scale up production. Japanese automakers, by far the most economically oriented manufacturers are still quite short on inventory. I would even go as far as to say they are using this opportunity to leave the affordable territory. Look at the Prius ...
Then don't buy those, buy a Mazda or Hyundai.@@KNRS927
@@dmac7128 Elon doesnt have an oversupply... He can throttle production as he uses direct to consumer model. The price drops were not 20-30% from 2018 prices.. but 20-30% from 2022 prices.... He cuts prices to reach his annual sales numbers he tells his investors... Because he isnt a car company, but a software company, his investors care about supercharging, FSD, data tracking etc
There were cases when some cars that customers were too eager to buy so they would pay higher prices than msrp some of the most known from the past recent years were the Jeep Gladiator, Corvette C8, Ford Bronco and the Hummer EV.
Depends on brand. Honda and Toyota do way better than nearly all brands.
I own both. I buy new and hold on to them for 12 to 14 years then give them to younger family members.
@@IP0Monsturd yeah we have a 12 year old Volvo xc90 that is doing fine. It’s worth nothing but we had it from day one and did all maintence by the book. I took that and wife got new pilot. Love that it still has a v6.
This is why we need more transit, bike lanes and walkable cities
if you buy a car to drive to the end, then depreciation isnt an issue
Most people aren't capable of fixing cars, that includes myself, it's unlikely we would drive it through the end. I bought a brand new Honda in 2021, it was experiencing issues in 2021 then 2022, so i traded in for like $3K and got another new car. The issue is a repair here and there will outpace that $3K easily given how much car repair cost. So at end of the road, everyone has to trade their car in for a newer one (doesn't have to be a new car).
Most cars don't need major maintenance for at least 10 years which by then, if you drive 15k per year, should last you that or 150k miles. GREAT bang for your buck if you buy it new for 30k and lower.
@@Steven-xf8mz Basic maintenance like oil changes, or replacing a belt ain't that hard. There's definitely a guy on KZhead who posted a video about your vehicle. I will say new cars are a pain to work on that's why I love 90's Honda's simple, and easy to work on.
@@Undertaker93 While I do agree with your assessment, but I gotta say not everyone is capable of understanding car enough to work on one. People are generally different, kinda like plumbing, i can watch bunch of videos, but i always find myself calling a plumber unless it's something like a lose screw.
I have a 2016 Jeep Grand Cherokee Limited. Bought it when it came off a 3 year lease. It had a sticker of 46k. I bought it at CarMax for 22k with 35k miles. I paid off the car in 3 years and will drive it until it dies. But, I take amazing care of it. Regular oil changes, tires and anything that goes wrong (nothing yet) will get fixed. Will never by a new car.
The benefit to being the only owner is knowing everything that has been done to the car. I bought my truck brand new and expect to still own it 20 years from now, so it will never lose it's value.
..that was then...this is now.....50k or more for a crappy new truck...........
@@e.rivera4251 $35k for a Tacoma that will last for 20+ years
My 2013 Nissan Maxima still running strong 💪🏻
"Why Cars Lose Their Value So Fast" Laughs in Land Cruiser
No one has mentioned "sales tax"... That amount e.g. 10%, will go directly to government. So you must remove sales tax & dealer margin to get to the wholesale price. So it definitely drops MORE than 10% after you drive it off the lot.
"I bought 30 yars old car and it's still good" - you forget to mention that quality 30 yars ago was much better than modern "all cheap plastic" cars
the "value" in the car is the want from you as the consumer and the holder of the asset which is the dealer. Once that euphoric feeling deteriorates, so does the car's "value". The value subsequently detiorioratges mainly due to the same car that is released every year with newer technology so the "want" phase is restarted all over again
47 and owned used cars since I was 19. Over that time my cars have costed me an average of $1200cad/year. (Purchase price plus repairs) Current one is an 2015 rav4 I bought in 2018. Paid $20kcad, can sell today for $17kcad. Only had to replace the battery. Last car was an 08 impala I paid $3k for and it lasted 6 years problem free. Covid did change the market so way less good deals these days unfortunately.
Never bought a new car and never will. I'm 60 and always happy with my used purchases. I also pay in cash for my vehicles. They always got me to point A to point B. That's the only reason I need a car in the first place. Do it the cheapest way and the most efficient way. Every purchase's I made has always been a good purchase. Having mechanical skills does help. Current car I own it 12+ years. Paid $4,700 for it. Might put in $1,400 in repairs not counting normal maintenance. Still running strong with 211,000 miles on it. This is a 2006 Ford Freestyle. Yes, I have funds saved up for my next purchase when I need to. So far I have $8,000 saved up. Not sure when I need it. But it's there when I do need it.
I just bought a car in July. Looked for months! I looked for just about anything not made in America preferably Honda used of course. I would pay cash. There was nothing there. Honda prices are high with older models and high mileage. I settled on Toyota. I'm just happy to own my first car.
As someone that repairs Honda, Toyota/Lexus in an independent shop, use OEM parts. The automotive parts industry is flooded with cheap Chinese parts. The quality is questionable and difficult to gauge. As we tell customers, cry now and thank me later! Even Amazon has pirated parts from third party vendors.
@@jamram9924 damn China. I think we're all gonna be made in China one day. Even tho I know they'll rip me off, I'm gonna do all my repairs and maintenance at the dealership. At least I know it's gonna be OEM
Congrats on your first car huge accomplishment 👏🏻👍🏻
@@naturegirl2110 We can curse China, but our manufacturing became too expensive in the US. China found a niche and exploited it. I deal with auto parts on a weekly basis, sometimes Honda or Toyota parts (hoses, gaskets) have the Made in China on them. I cringe but they also purchase millions of Japanese and European vehicles. Now, we’re beginning to see some parts that are manufactured in Mexico due to the “reshoring” where many manufacturers are relocating to Mexico due to the higher labor costs in China.
@@jamram9924 if manufacturers kept their facilities in the US, then the higher cost wouldn't matter because people would have jobs and would also be paid more. America gave away their middle class to China
I think the whole industry regarding cars is backwards. So they manufacture a vehicle only to sell it to a dealership and then one has to haggle a good price on it, only for it to depreciate. I could understand why it would depreciate and that is because of natural wear and tear, not to mention it being exposed to the elements and being an asset that is exposed to a high chance of being dented or crashed.
The manufacturers don't wanna deal with y'all directly.
I remember signing my lease in January 2020, my the end of the term in January 2023, the buyout price for the car was at $30k and the vehicle was worth $45k. I had the dealer offering me $10k to give it back because it was in such high demand.
Heard a used car commercial say, "By the way, everyone is driving in a used car." After that, I never bought new again. Car has to be at least 5 years old, for me to consider it.
why buy a new car for 30k+. When you can buy a used one with 60k miles and 6 years older for 15k....
What’s the difference between a new car and a used car? ….1 mile driven 😂
Facts bro
Fun Fact EV Depreciation is even WORSE It's HORRENDOUS
cos EV maintenance is very expensive compared to regular cars. It's like reselling a used battery.
The first value you loose is the profit the dealership makes. Then if you finance the car you loose the interest you pay to the finance company. Then the car depreciates as new ones come out. In the uk new cars come out twice a year with new plates. So twice a year at least your cars value is depreciated. On top of that you have miles and condition of the car.
The dealership are ripping people from left and right now days, some are selling over the original MSRP prices and high miles
In the UK there is a 20% sales tax (VAT) on new vehicles excluding business sales. I assume the same is largely true in the US. So there is the simple explanation for the largest chunk of depreciation on new cars, yet CNBC don't mention that. Why?
I think the concept of depreciation on any item is a good way to gauge if buying brand new is worth it or not in some cases I find buying new can be cheaper if the the retailer has a clearance sale but in a lot of cases you can save a lot of money buying gently used. For the first time I bought a refurbished iPhone from a certified and excellent grade. I bought the IPhone 14 Pro Max for under $900 before taxes. Last year it was being sold for $1,100 plus tax. I saved around $250 buying it used. Also for professional attire, vintage shops might be a good alternative. I live in Hawaii where we use very nice aloha shirts for professional attire but they can cost up to $100+ each. I’ve seen some vintage stores sell the same brand of aloha shirts gently used for around $30 so it’s a good saving.
You didn't save a dime. You spent $900 on a device that costs Apple $160 to make and an equivalent Android would have cost you $200. You sound like my girlfriend coming back from the mall.
@@joegreene6250 androids are crap! Used to use them. Apple products last much longer and worth the premium price in the long run. Of course Apple has a profit margin which is why they are in business. If you can make an iphone yourself for $160 then I'll pay you double for it but tough luck you don't have the economies of scales to do it and I don't think your girlfriend will stick very long with a brown nose like you. She will either dry your wallet and dump you or marry you and divorce you after a year!
Not in Saudi Arabia, car prices are skyrocketing due to the imposed 15% tax which made the used cars desirable since no tax is charged. Adding to this, new car prices are increasing also
A major reason cars lose value once you drive them off the lot is because one has to ask what is so wrong with a brand new car with 1,000 miles on it that they're trying to sell it. It's not normal to sell a car that new. It has a smell of a serious problem.
I bought a brand new 2023 Toyota Camry ( only 13 miles on it) by force not by choice. My 2011 Camry was rear end(almost hit the gas tank)by a drunk driver. I thought I was going to have that 2011car forever but....
You could’ve bought another used car.. no one FORCED you to buy a brand new car lmao
No one "forces" you to buy a vehicle, especially a new vehicle for that matter!
@@KingMatt1 and no one forces you to buy someone else’s headache either. What’s your point?
@@IP0Monsturd certified pre-owned vehicles exist and you should always do your own due diligence before buying any vehicle. I’m not sure whatever point you were attempting to make here? Lmfao
I bet you got pretty decent money for the 2011 though.. hopefully the clown that hit you had insurance.
pretty simple--they are over-priced when new
They will be overpriced at any stage of the vehicle's life due to either the dealers or private sellers, trying to make a profit.
He said the average new car price is about 30% more than what it was pre-pandemic, but didn’t mention that inflation alone is accounting for 20% of that
You missed the biggest reason why a new car loses so much value when you drive it off the lot. First most people tend to finance newer cars. To get someone to purchase a used car (even a one month old one for example), you have to make the payment difference between a new and used car big enough that a buyer would be willing to buy used (again even if slightly used). If financing it requires a pretty large difference to make much of a difference in the payments of used vs new.
Laughs in Honda.
Always be wary of a vehicle that traded in less than a year or less than 10k in mileage.
Oh, it can be a Chrysler employee lease return! ( lease term is one year, unlimited miles! ) a lot of high mileage, one year off lease Chrysler vehicles are like that, especially with unique combination of options because each vehicle is ordered