A New Car Loses Its Greatest Value in Year One

Money Fact or Hack

A new car loses its greatest value during the first year of ownership.

What else you should know

• Your new car could be worth up to 11% less the moment you drive it off the lot.

• By the end of the first year, your new car could depreciate up to 20% or 30%. 

• An example of how new car depreciation works. If you purchased a brand new car for $25,000, it is will be worth an estimated $22,250 (11%) by the end of the first month, and worth roughly $20,000 (20%) by the end of 12 months.