Why isn’t it treated similarly to a house?
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I think that’s a misconception. They don’t all do this. In fact many higher end cars actually appreciate in value once you buy them.
And even for more normal cars they don’t “lose 25% on the first day” as many people seem to believe.
It really depends on the situation. It’s a market so demand creates the price.
The main reason why this can happen is when a customer looking for a new car will ask “why would I pay the same amount of money for a car someone has owned when I can go and get a brand new one with 0 owners?” This means sellers have to give somewhat of a discount to sell their car. But let’s say you’re in a market where cars are in deficit (like post covid). This logic wouldn’t work.
I guess your real question is why do cars depreciate at all when a house doesn’t.
And well that’s again a misconception. A house won’t stand for 500 years so it still has some depreciation. The reason why we don’t notice is because of the way our economy works and of the fact that demand for houses keeps growing over time.
But your house will still be cheaper than a brand new one that’s exactly the same in 2 years. That’s depreciation.
Also a lot of cars don’t lose value at all like many Toyotas etc.
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