Why Cars Lose Their Value So Fast

LTC Eugene Chu
"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."

I remember in finance 301. The most appreciation happens after the first two years. My professor and finance bought a corvette that was two years old and saved quite a bundle. I did the same thing when I bought my 2018. Christ or pacifica touring L. I use cargurus.com. They compared other dealers for the same vehicle. And I got it for a good price and back then. The interest rate was six percand that is an excellent vehicle with two hundred and eighty seven horse power and I feel like I'm driving in a spaceship with a killer stereo and plenty of acceleration.

But if you buy an electric car, don't be surprised that the battery will go bad after 8 years and look what happened to the guy from Finland who blew his car up. Because he didn't want to pay $25k for a new battery.

https://youtu.be/6zAhwiQ95Wg?si=xvSDrlQY5LR16wQK

PO1 William "Chip" Nagel LTC Eugene Chu
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