Depreciation
How much value a car loses over time. Heaviest in the first 3 years.
Why it matters
Depreciation is the loss of value as a vehicle ages. New cars lose 20-30% in year one, then ~15% per year through year five. Some makes hold value better (Toyota, Subaru, Porsche) and some are notorious for fast depreciation (luxury sedans, electrics with rapid tech turnover). Understanding the depreciation curve is key to deciding whether to buy new, buy used, or lease.
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