WHY DO SOME CARS DEPRECIATE FASTER THAN OTHERS?

Posted by Tom Martino at 4:16 pm 0 Comment Print

Depreciation is determined by one thing and one thing alone: Perception.

Perception drives buying decisions. When more buyers go after a particular group of cars (such as Japanese), the supply is lower and prices rise. When prices rise, depreciation lessens.

Right now, perception is that Japanese cars are great values because they last a long time and have reasonable repair and maintenance costs. Therefore, the buying public is very interested in Japanese cars. Whereas German cars are perceived as expensive and luxurious – and not necessarily a great value.

By the way … cars that do NOT depreciate much, are TERRIBLE used car values. That’s right! If you want a great new car value, go fo the cars that do not depreciate as much. BUT IF YOU WANT A GREAT “USED CAR” VALUE … go for the cars that depreciate a bunch!

When you get rapid depreciation (as in some American cars) you can find lower mileage, newer vehicles at great prices.

FOR MORE USEFUL CONSUMER INFORMATION … listen to my radio show, live on Facebook, YouTube and iHeartRadio (app), weekdays noon to 3pm (EST).

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