Why does your new car lose 30% of its value the moment you buy it?

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Did you know that new cars can lose up to 30% of their value as soon as you drive them out of the dealership? This depreciation process can expose you to unnecessary financial losses when purchasing a new car.

What is car depreciation?

Depreciation is the way in which your car loses value over time due to wear and tear, aging, and changes in market demand. Understanding these factors is important for you as a buyer.

Why do new cars depreciate quickly?

Initial discounts and promotional offers can lead to a reduction in the market value of newly purchased cars. The launch of new models with improved features makes older models less attractive to consumers. Moreover, major manufacturers in the automotive industry are increasingly competing with each other, leading to accelerated production and the launch of more and more new models in shorter time periods. This significantly contributes to the depreciation of previous models.

Real-life stories

Many buyers are surprised by the rapid depreciation of their new cars. For example, Ivan buys a new car for 50,000 levs, only to find that three years later, he can only sell it for 35,000 levs.

How to minimize the depreciation of your new car?

Choosing models with lower depreciation, buying a used car, and selling your car at the right time are among the strategies that can help you deal with depreciation.

Alternatives to buying a new car

Here, we want to introduce you to the service Simpl, which offers long-term car rentals with full service and maintenance included. With Simpl, you can easily switch your car for an even newer model whenever you decide, without worrying about depreciation. This is the ideal solution for you if you want to enjoy the benefits of a new car without the worries of depreciation and maintenance.

Depreciation is a key factor when purchasing a new car. Paying attention to the factors affecting depreciation and considering the alternatives can help prevent unnecessary financial losses.