As soon as you drive your brand new car out of showroom, its value starts decreasing. What’s the reason for such fast depreciation?
In: Economics
Many, many people abuse the crap out of their cars. People don’t like to buy other people’s problems, which drops the demand for used cars.
If I had the choice between a brand new car for $30k, and an identical car that’s 1 month old for $29k, I’d pick the new car 10 times out of 10 so I don’t have to worry about what kind of hell the previous owner put their car through in that month. I wouldn’t even consider the used car until the price dropped to more like $25k, and most other people feel the same way, which is why the value of your $30k car that you’ve only had a month is $25k.
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