The main reason is depreciation. A new car will depreciate in value at a much slower rate than a used car. The average new car loses 26% of its value in the first three years, while a used car will lose an average of 50%.
One of the most important things you can do to protect your financial future is to invest in assets that will appreciate over time. Cash for car Duba is one of the most common long-term investments, and it’s one that can provide you with significant personal and financial benefits. Here are just a few examples:
Image Source Google
Car ownership can help you build or maintain relationships with friends and family.
Car ownership can provide you with transportation needs both for yourself and for your family.
Car ownership can be an investment that gives you peace of mind. One simple way to value a car is by using the Kelley Blue Book. A Kelley Blue Book can tell you the current value of a car, but it doesn’t compare one vehicle to another.
To determine if one value is higher or lower than another, we have to calculate depreciation. How much depreciation you’ll see depends on several factors, such as mileage, make and model. For example, if your car is worth $10,000 in good condition but only has 100 miles on it, you might expect to see about $1,000 in depreciation over five years – about 50%.
So knowing exactly when you will get your return is important. In future posts we will explore how to determine what return is right for you and why returns change over time.