What are the depreciation rates of cars?
Typically depreciation of new cars is 15% the first year, and about 5-9% every year after. The rate of depreciation is going to depend on what make and model of car you have. Some cars hold their value better than others. For example, a three years old Porsche is going to depreciate at a lower rate than a three year old Honda Accord. You can use our car depreciation calculator to determine what your car is worth, or will be worth. What can I do to minimize the impact of depreciation? The tips below should be followed when buying a car. — Buy a car that is one or two years old. These cars will still have a warranty, but will be significantly less in price than the same car but new. — Purchase a car that is part of a dealership’s year end sale, or model run out. You will get a good price on a car when dealers try to unload. — Dealers often offer ‘drive-away’ deals. This means you can buy a car, drive it off the lot yourself without having to pay delivery and registration fees. — Cert
