Frequently Asked Questions
A new car loses about 20% of its value in year 1, then roughly 10-15% per year for the next few years. By year 5, a car has typically lost 40-60% of its original value. Trucks and some SUVs hold value better than sedans.
Buying a 2-3 year old car typically offers the best value — the steepest depreciation (year 1) has already occurred, but the car still has plenty of useful life remaining.