Why A New Car Loses Value So Quickly

In the market for a new vehicle? Then you’re probably going to want to buy a car that’s either secondhand or is a few years behind the current model that’s just been released.

Why? Because brand new cars instantly lose their value when you drive them away for the first time! As such, it’s difficult to justify a purchase like this, no matter how good of a budget you’re working with. 

But why do brand new cars lose their value so quickly? There’s a couple of main factors to know about; check them out below.

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Cars Get Damaged All the Time

You might not realize it, but every time you take a car out of the driveway and onto the road, you both take on a lot of wear and tear and run into the chance for major damage. After all, you could have an accident, or a collision, or the engine could go kaput and break down on you. 

All of these things make it difficult to maintain value over time, which makes any new car purchase something to think about very carefully! Your car might look good on the outside, as it’s brand new, top of the line, and you paid a lot for it.

But when the time comes to sell it on and get a new car, the car could be covered in scratches, chips, and even have cracks in places you’ve never thought to check. Debris from the road could even have completely ruined the inside of the car bumper, and the headlights could be one simple tap from going out.

You can minimize this kind of damage by applying paint protection film to the body work. This will protect the paint from getting scraped by every day use. That will help to retain some of the value you originally paid for, on top of the usual yearly inspections and services.

It’s Very Hard to Try and Convince a Buyer

That’s why autodealers often need to rely on so many tricks to try and make a sale. Because when you want to buy a car, you need to know everything about the condition that car is in. 

And if the car is in any less of a good condition than you’re willing to buy, you’re not going to put any money down for that vehicle. You don’t want to buy a car that is more trouble than it is literally worth.

Combine this with the fact that cars are very easily damaged, and there’s no guarantee that the car has been well looked after and/or properly fixed up before being sold on, the value ceiling just gets lower and lower.

When you buy a new car, you’re making a very expensive decision! So make sure you understand where the value really goes when you start to drive it, and if you’re willing to put down as much money as possible for something you’re unlikely to get a good return on.  

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