Why do car values depreciate year on year????

Question

Why do car values depreciate year on year????

Answer 1

Car parts are used (more worn out, even the ones you cant change/see)

Newer cars come out

More gadgets are added to cars

The list goes on

Answer 2

Because they wear out, I wouldn't buy a modern car it it was out of warranty. too many thing to go wrong and expensive.

Answer 3

not all cars loose money .certain sports cars and limited edition motors  gain valve .or when a vehicle reaches a certain age .it starts to gain valve .look at the vintage cars and see how much there worth now..

Answer 4

they dont if you store it....just saw a mk1 fiesta sell for £3570,only 7 miles on theclock...when new it cost £2348

Answer 5

wear & tear, new technology, and  cost vs new.  

Answer 6

partly because of what everyone else has said....wear and tear, warranty, unreliability etc

But another reason is the buyer - if you can get a brand new car for £10,000 why on earth would you buy one that someone else had been driving for the same price?!

You wouldn't pay for a £70 for a pair of trainers that someone else had been wearing for a few weeks would you?!

Answer 7

High mileage, wear and tear of body work and mechanics.  No one is going to pay a high price for a second or third hand car which is getting old and worn.

Answer 8

BECAUSE THEY COST MORE MONEY TO RUN WHEN THEY ARE OUT OF WARRANTY.

THEY ROT AND THEY WEAR OUT.

Answer 9

Pretty obvious really..

you buy a new car.... drive it for a week... then try to sell it.

if you were the next buyer, would you pay the same for a week old car, or get a brand new one??   it has to be less, or it won't sell.

lets say the car is now 6 months old.. would you expect to pay the same as a new car, or a 2 month old car?? again, it will have to be less than the 2 month old car..

And it goes on and on, until it hits the scrap yard..

There are two exceptions to the rule...

A new car may have a long waiting list.. some exotic cars can be years..  in which case, you may not want to wait, and prefer to pay over and above the new price in order to get one.

A very old car that is in exceptional condition for it's age, and is also very rare, may command a price that is higher than when it was new..

However, in it's first say 10 years, it will have followed the norm, and depreciated just like any other..

Answer 10

Because they get older and get more mileage put on them and more weather damage is done or more scratches are added to the car.

Answer 11

Because they get older and hence more unreliable.