Why do cars depreciate once you drive it off the lot?

Question

Why isn’t it treated similarly to a house?

In: 111

Answer 1

One is scarcity – there is only so much usable land on planet earth, whereas millions of cars get churned out every year, with each new model potentially being an improvement over the old one.

The other is that houses, or at least the land they sit on, can be used indefinitely while cars are complex machines that break down over time.