Why is it that cars and most other vehicles only ever depreciate in value, whereas homes generally appreciate continuously?
In: Economics
The world keeps growing in terms of population, but the amount of places we can build a house keeps dwindling. People who realize that can raise the prices on their house and sell them for more pretty easily; since this is the general trend, houses constantly rise in value.
When you buy a new car, generally, it’s the latest, hottest thing in the market; however, in one year, there’s hotter, newer cars out for sale, and interest in your car dwindles; your forced to lower the selling price on your car so that someone may consider buying it instead of a shiny brand new model, so your car’s value constantly depreciates as time passes.
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