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

I think in reality it’s the first year. Last years model can’t possibly be worth the same as the one on the showroom floor. I think the average American puts like 10k miles on a car every year. That’s a decent amount of wear on the tires and rest of the car. I read an article about brand new Jeeps lose about $4k value the first year then about $2k a year for a while