Why isn’t it treated similarly to a house?
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A house *does* depreciate the moment you are handed the keys. Closing costs are often more than 6% the price of the house, so if you were to immediately sell your house you would not get the full amount back. Unlike a house, those middle-man fees are built into the sticker price of a car.
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.
Because they are used. Pretty much most used items are instantly worth less than new ones. Usually you’d expect a used item to be around 30% less than new (not cars but general items). As otherwise you might as well just buy new and enjoy the benefits that come with that.
To fuck you over. Point blank, your vehicle never listed any true objective actual value, it’s just a prime example of how capitalism works. It’s already made, the resources to produce it have already been expended, the items own value is worth what it’s produced for; the difference is just corporate profiteering
Similarly, a modern car is, “worth 36k” off the lot from MSRP, but it instaneously loses tens of thousands in value on sale when you neglect factor X and Y factors that you’re manipulating to save on money, then it ends up at Y calculable number which ALSO relies on falsified data to “account” for X undercounting – because performing at less than a totally made up arbitrary number is bad? Then these discrepancies add up and somehow companies akin to Lamborghini are producing millions of units per year.
No the fuck they aren’t that’s blatantly stupid, you’re a fucking idiot for believing it, and go fuck totally for being too fucking stupid to figure out what’s going on
Because once the paperwork is done the car has changed hands and it’s legally considered a used car.
Houses tend to be more indemand. If you have an in demand car (like a 2005 Ford GT) then it could increase in value the moment it drives off the lot.
Okay, so let’s imagine you’re buying a new car. Is it okay if I get in it and drive it around for a bit before you take it home?
No? You don’t like that? Would you pay a few bucks to make sure nobody had done that?
If you’ve had it why would I pay more when I can get the exact same thing for less and have it brand new? It’s not like they’re gonna stop pumping then outta the factory
Granted for cars where supply IS low like limited editions or cars that just can’t meet demand, people are definitely willing to pay higher prices to buy it off someone who just took delivery of it
Depending on where you live (using the UK as an example), 20% of that cars value is VAT (sales tax).
Outside of extremely rare cars that would be an instant loss of value.
A house doesn’t get in “crashes” and doesn’t need nearly as much maintenance as a car.
A 10 year old house is pretty much guaranteed to be just as good as new. A 10 year old car is pretty much guaranteed to already have many minor problems and to be about to run into many more, possibly major ones too.
Then there’s also the psycho-social aspect of it: how do you know (as a buyer) that the dude really just drove off the lot? And even if he did, how do you know that he didn’t crash on the gate while driving off? Surely if you’re trying to sell a car you JUST bought you did some dumb shit with it.
Because there’s a lot of things that can go wrong with the car.
Once someone “drives if off the lot”, you don’t know what’s been happening to the car, therefore, purchasing it involves more risk than purchasing a brand new car.
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