Why isn’t it treated similarly to a house?
In: 111
They don’t. The value within them is the same throughout their “life”. The cost of creating newer versions might go down because of newer tech but that is then a newer car.
The value in the economy however has many many factors. Brand image, technology within, manufacturing costs, dealership markup, mileage etc.
A brand new normal car is the premium case. After 50 miles the car is no different but if you are selling it there must be something wrong. So value plummets regardless of the actual value or even actual circumstances it looks weird so price will be WAY down.
After a couple thousand miles the price cannot go up over the returned to forecourt price so it then takes the gentle slope of depreciation.
If dealerships and manufacturers were honest that dealership drop should never happen because it should never be that high of a price point. They are not however.
Latest Answers