What is car depreciation?
This is the term that defines how much your car will be worth at a particular point in the future. As a car gets older and has more miles on the clock, it inevitably is worth less. People overlook depreciation, but it is the biggest cost of ownership in many cases. When you come to trade the car in with a dealer or sell it on the open market, the depreciation will be the difference between what you paid for the car and what it is worth at the time of sale.
A new car can lose 60% of its value in the first 3 years alone. Used cars do not lose their value as much as a new car. When deciding what car to buy,
people look at price, economy and style first. But depreciation is an important factor in the finance. A car that does not depreciate as much will save you more money than one that costs a little less to fill up and lasts longer between refuels.