From the very minute the owner of a new vehicle finishes the purchase process of the vehicle and drives it off the lot it depreciates in value. Depreciation is something that no one likes to think of when owning a car, but it’s a reality that must be faced. Basically what it means is that the car’s value is lower, and as time goes on, weeks, months, years, the value the vehicle continues to get lower. Depreciation is something that those who are buying a used car need to keep in mind if they want to get a great deal on a used car.
Learning more about depreciation
Each year as a car depreciates in value it loses about 10% of its worth. A car that is about 2 years old will be worth about 80% of its full value. A car that is 3 years old would be about the same.
After the first year of owning a car, the value of depreciation seems to be at its steepest, and then from thereafter the depreciation process is a bit slower.
The main reason that a vehicle depreciates so much after you have driven it off the lot is because you are paying the retail price for it. When you leave the lot with the vehicle and say you decide to sell it right after, you will only be able to receive the wholesale price for the car. So basically the car will have lost thousands of dollars once you leave the lot with it.
Searching for the right price
There are plenty of guides and books that can help you out in learning the value of a used vehicle or a used vehicle that is fairly new. Search online for Blue Book values, etc. In this way you would not be getting ripped off. This is the case that you want to buy a used car.
Why not lease instead?
Leasing a vehicle has many advantages to it, and one of them is that you don’t have to worry about buying it and then the price depreciating when you drive away in it. You don’t even have to worry about selling it; just turn it in when the leasing period is up. Browse Frontier Leasing to find some of the best high-class vehicles up for lease for about a 3rd of the price that you would pay to own a vehicle.
Another advantage about leasing is that you can have a new car every year or every two years. Once the lease is over for one vehicle you can try out another upgraded model. No one will know that you are leasing unless you tell them; they would think the car is your own. Frontier Leasing has a huge inventory of cars available to lease to choose from, and you will most certainly find a car that suits you. If you plan to lease a car you should be prepared to have your credit score checked because you must have good credit to get approved.