Car Depreciation Explained

As the title suggests today we are talking about car depreciation and what it means. We go over how much value a new car can lose when driving off the lot as well as a few years down the road. We talk about ways the value of a car can go down faster than the average as well as how to slow down the #CarDepreciation to lose less over time. Let me know in the comments down below if you've experienced a huge down in value after purchasing a new car. Thank you for watching.

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DISCLAIMER: Please note that TruFinancials is not a financial advisor, and these videos are for entertainment purposes only.

[robsrules]

It is amazing how a car goes down in value so rapidly. I would rather keep the car as long as I can. Not worth selling it for the reason you stated.

[tiebear]

People need to keep a vehicle for 10 plus years then depreciation is irrelevant. Cars are like stocks the only people who get hurt and lose money are ones who jump off halfway threw.

[Shannon_Vlogs]

My car is pretty much not worth much anymore, but it still runs good and I’m not looking anytime soon, but it has definitely depreciated since I bought it!!!

[JesusLopez-wggz]

Thought this channel had like 5 million subs, great content and high video quality keep it up!

[Patso]

What is crazy, if you look at used cars right now. Those percentages don't hold water because of the demand. I would buy a 5 year old car for 12k. But they are currently at 18-20k.

[lakt]

I bought a used car that was 1 year old with 38, 000 miles ! As of today its at 209, 000 miles. Car has served me well never had any major mechanical breakdowns. If I was to trade it in or sell it to dealer - it will be less than the down payment I fronted. Had me realize that the loan I got for my car was just pay for the decreasing value so sad

[carguy]

I watched this because I was bored but I do find it funny that we don't buy any other machine to use and worry about depreciation. A car is a machine to be used, I bought a welder and I don't worry that it looses value over time. It really didn't loose value I used it, so I got years of use off out of it. I buy new cars because in southern California the 3 to 4 year old cars have near 100k miles on them and they still cost a fortune. Buy a new car and keep it up, take care of it and keep it atleast 10 years and it's worth it. My wife's 2004 Mustang V6 was bought for 20k in 2004 and sold for $1200 in 2016. The car didn't loose value it was used, the car had 7500 miles on it when bought and sold with 170K miles. 18K over 12 years and over 160K miles being put on the car isn't bad.

[Doamino]

Ok I understand most things depreciate slowly over time and that makes sense. What doesn't make sense is WHY a brand new car depreciates so much so quickly just by driving it off the lot.

[nancykay]

What about Honda’s? I have a 11 yer old CRV and may buy new when I replace it since their resale value is nearly as much as a new one

[ZSTE]

Private sellers can get you more, but most people have trouble financing for that so it can take longer to find a buyer, unless you lower your price.

[lusciouskollektibles]

Perhaps you're better off with a Tall Model 1933 Zippo if ever it shows up at auction at all. A better petrol-burning object I guess.

[danielmunoz-lifeideas]

Deductible Depreciation is somewhat an asset

[kalevra]

Clearly politicians are going to bed with automakers

[CJ-wclf]

Depreciation matters a lot when you buy a brand new car. I sure would hate to buy a brand new car knowing my net worth is going down fast. If you keep it 8, 9, 10 years, Toyotas sell for several thousand dollars more than other brands. It is good to think of the future. What if the car is totalled, and you get a really small check while still having payments (buy in cash if possible), and you are upside down, and need to take on another car's payments.

[bharathu]

When cars are about Status.. ego inflates inversely proportional to the depreciation in the value of the car. At the end of 8-10 years all I'm left with is a deflated ego and a car worth shit which further deflates my ego day in and day out.

I wish every Fuel station came with an ego inflator along with Tyre inflators 😐

[YamadaDesigns]

After how many years does depreciation start to plateau?

[coachsbsetheharvestguy]

I was looking for the true facts on depreciation, not the story we are told by car lots salesmen.
Maybe I should look for the answer from an accountant.
Why are you telling us dealership profit is depreciation?
Used cars have huge profit margins, sometimes 100% or more. A 12K vehicle may have 6 lbs on it. A lbs is 1k profit. Some salesmen get 20% commission so that is $1200.00 Payday. That’s not depreciation!
I do agree that approximate 50% depreciation in 3yrs is spot on!

[JhoanMiguel]

2018 Mazda Miata RF grand touring Automatic with auburn leather with 5k mikes should be cost value 19k$ 45%

[theritebowl]

Hey man! Where did you get the 46% depreciation figure after year 3?

[SJ-ossf]

I know this video is old but you probably should have mentioned the tax breaks you get on depreciation to help offset the loses you accrue on a vehicle.