In the US, there are 276 million registered vehicles and 91% of American households have access to a car.
While car ownership is so prevalent, it’s shocking how little we know about vehicles and their values. So when it comes time to buy or sell a car, many people get the wool pulled over their eyes, and they end up either overpaying or not selling at a high enough price.
When it comes to vehicles, knowledge is certainly power. So in this article, we’ll show you 4 things you should know about values.
Huge Immediate Depreciation
As you probably already know, new cars can cost an arm and a leg. But what’s shocking to many new owners is the fact that the vehicle depreciates by 20-30% in value in the first year!
So technically, as soon as you drive off the lot, your is worth just 70-80% of what you paid just minutes ago. However, considering that most people don’t sell their in the first year of ownership, this number isn’t all that relevant.
Yearly Depreciation
As with many valuable belongings (such as your computer), your will depreciate every year, not just in the first year. So your car’s value will only decrease as time goes by.
In general, you can expect your to depreciate by 15-20% every year. So if you’re planning on buying another vehicle and/or selling your current one, you really need to take this into consideration.
Always Use an Estimator Tool
In the past, it was difficult to find out the market value of your vehicle. But with how easily accessible the internet is these days, there’s no excuse when it comes to valuation.
Before you sell or buy a , look it up with an estimator tool, such as those from Kelley Blue Book and Edmunds. That way, you can get a general feel for how much the vehicle’s worth and proceed from there.
If you’re buying, then you won’t get ripped off. And if you’re selling, you’ll be able to price your appropriately so you get a decent amount of cash for it.
Cash Buyers Are an Option for Junk Cars
If you need to sell your car but don’t want to go through the traditional route (which can be a hassle), know that there are cash buyers like Carvana Sell My Car.
This is a great option for quick payments, especially if you have an undrivable . You might think a junk car might only get you a couple hundred dollars, but cash buyers can appraise your vehicle and give you a nice return.
Know What Affects Car Values
Now that you know more about car values, you’ll be able to have a keen eye for spotting bad deals. Not only that, but if you ever need to sell your , you’ll get top dollar for it!
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