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.