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

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Why isn’t it treated similarly to a house?

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Anonymous 0 Comments

There are lots full of cars the dealer can’t sell. There are no lots full of homes realtors can’t sell.
Basically, there’s no reason to pay full price for a used car when you could just buy a new car. But there’s a lot less opportunity for a “new” house, and location might be more important than the house itself.
Houses depreciate too, but the land tends to gain value as demand increases. The land can be a significant portion of the price, so you can remodel or even build a new home. Unless a car is a one of a kind, it’s not worth repairing even minor damage after an accident.
You might buy the only house available in a neighborhood you want your kids to grow up in. You can buy a car from another state, so there’s more opportunity to shop around.

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