All About Car Depreciation

Direct Connect Auto Transport knows all about cars, trucks, SUVs and even boats. If you want to know how cars depreciate, auto transportation services like Direct Connect Auto know everything about cars and saving you money. Below are the preventative maintenance tips you can follow to save

How Much Money Will A New Car Lose?

The average car depreciation rate can drop 20 percent within the first 12 months of ownership. That is a lot of money to lose just within the first year. It is often said that once you drive the car off the dealership lot, you automatically lose money. That is true, with a significant amount lost the first year, with every additional year being another 10 percent off the value of the car. This means that after five years, your car’s value will be worth just 40 percent of the original price of the car!

How to Reduce Depreciation

If you use your vehicle less, your car will not depreciate at such a high percentage. If you use your car for over 10,000 miles a year, your car will break down at a much higher rate. To find out how much a specific car will depreciate, you can use a car depreciation calculator. A Carfax history report will be able to give specific vehicle history reports for information on each car to determine depreciation.

Since the instant you are on the road, your vehicle comes down to wholesale price – you want to consider taking extra special care of your car. Also, cars in high demand with low supply will have a lower depreciation rate. A car is only worth the price people are willing to pay for it and if its the opposite – in high supply and low demand – the owner will see a much greater depreciation. Your location can also affect the depreciation rate. Since cars are often in better shape in warmer states, you will find cars depreciating at a lower rate in the warmer states.

With Direct Connect Auto Transport, you can save money on auto transportation and useful tips to reduce depreciation. You can effectively save money whether you need large vehicle shipping or military car shipping. Consider Direct Connect Auto Transport the next time you need to save money transporting your car anywhere in the U.S or around the world.