New car depreciation creates savings opportunity for lightly used car buyers

KMVT image of The Car Store at 5 Points in Twin Falls.

TWIN FALLS, Idaho (KMVT/KSVT) — A new car typically loses 20 percent of its value in the first year and depreciates about 10 percent for each year after that. While this may be frustrating to new car owners, it creates an opportunity for used car buyers to save significantly on a lightly-used model.

KMVT talked with a salesman at The Car Store on Blue Lakes Blvd.

C. Raynak says the cars that depreciate the least are usually foreign made vehicles, as they have a higher resell value. He adds that gas prices also can have an effect on depreciation.

For example, larger vehicles are harder to sell, when gas prices are high. However, when it comes to buying a car, your needs comes first.

“It's about getting a car that fits your needs as opposed to worrying what cars are going to depreciate the most,” he said. “Again, gas prices because they're low, SUVs are depreciating a little less than other cars, but don't go out buying a SUVs just because you think it's going to hold its value. Find a car that will work for you and then you'll be fine.”

He also says, if a person is going to buy a new car, it's best to hold on to them for 8 to 10 years, as trading them in sooner will cost thousands.

According to a national data, from iSeeCars.com, the highest-depreciating 3-year-old cars in Twin Falls are as follows:

Ford Fusion Hybrid ranked number one and has 51.2 percent depreciation, followed by Chevrolet Impala, with 50.7 depreciation; Nissan Altima, depreciation unknown; Chrysler 300 has a depreciation of 48.2 percent, and last, a Volkswagen Passat with a depreciation of 46.9 percent.



 
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