Debating whether to buy that new Jaguar, Maserati or Porsche?
If you don’t plan on keeping it for a while, you might want to consider the rates at which the value of those more expensive cars will decline.
In fact, cars can lose as much as 10 percent of their value within just the first month after you take it from the lot, according to Carfax.
It is worth noting, however, that luxury branded cars can hold their value better than other models.
Assuming a $100,000 car is brand new, GOBankingRates calculated how much the vehicle will depreciate over the course of 30 years.
Here’s a look at the results:
In the first year, your car will lose 25 percent of its value, depreciating $25,000. That brings its value down to $75,000.
The second year owning the vehicle, it will be worth $66,000, after depreciating another 9 percent from its original value.
Once you have owned the car for three years, it will lose a total of $41,920 in value, bringing its worth to $58,080. Depreciation in the third year would be about 7.9 percent.
The car will depreciate 8 percent against its original value in its fourth year to $49,949. That year alone about $8,130 will be shaved off the vehicle’s value.
In year five, the car will depreciate another 7.5 percent against its original value, bringing its worth down to $42,456.
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After 30 years, the car will have lost about 97.5 percent of its value.
In order to help your vehicle hold its value, Carfax says it helps to keep miles around 10,000 per year to prevent excessive wear and tear. Regular maintenance is also important.
View more information: https://www.foxbusiness.com/personal-finance/how-much-your-car-will-depreciate