The Bad News — and Some Good News — About Depreciation

The very minute that you drive a new car off a dealer's lot, it loses value. That's just a fact of life, and the infographic below gives you a roadmap of depreciation milestones. But depreciation doesn't mean you shouldn't buy a new car. In fact, if your plan is to drive the wheels off your car, then depreciation has no effect on your purchase. But if you do intend to trade it in, you need to be smart about the resale value of cars, and here's the key: Not all cars depreciate at the same rate. You can compare the depreciation for cars you're thinking about buying by using Edmunds True Cost to Own tool. Now, on to a step-by-step look at how fast new cars can lose their value. Buckle up.