Depreciation is something that most car buyers are aware of, even if they may not understand how it impacts the price of a used vehicle. Shopping for used cars for sale in and around Moorestown will provide buyers with a wide range of possible prices for a vehicle. Understanding depreciation will help you choose the best deal.
In a very simple explanation, depreciation is the amount a vehicle drops in value every year. The depreciation on all used cars for sale is different, with some makes and models holding their value while others drop in value more rapidly.
In general, most vehicles will have a 49% drop in value in the first five years, with the first year typically having the greatest depreciation. However, if the vehicle has higher than average mileage, has interior and exterior damage, or if there is a known issue with the vehicle, the depreciation can be higher and more significant.
Why Depreciation Matters
If you are looking at used cars for sale, it is easy to use an app to find the average price in the Moorestown area. Unfortunately, these apps do not provide information on the drop in value of the vehicle over the next few years.
Buying a vehicle that is known to hold its value, have a long life cycle, and require limited maintenance and repairs to stay on the road is always a good option. This ensures that when you trade in your vehicle in the future, you receive good value to be able to put towards your next vehicle purchase.
