How Much Does a New Car Depreciate After One Year?

[DeKhloe]

Generally, a new car depreciates by 15% after one year. Below is an introduction to car depreciation knowledge: 1. Depreciation standards: For normal vehicles, the first five years follow a depreciation rate of 15%, 13%, 10%, 8%, and 7% (some models may be higher or lower). After that, the car depreciates by 5% of its value annually. According to used car market sales data, new cars within three years depreciate the fastest, with a drop of 20%-30% being quite normal. If you factor in the purchase tax and various insurance fees paid when buying the car, the depreciation is even greater. Therefore, it is not recommended to change cars within the first two years. 2. Best time to change cars: The most cost-effective time to replace a new car is after three years because the warranty period for new cars is usually three years. Within this period, any quality issues can be repaired by the manufacturer. However, after three years, the car's depreciation rate increases significantly. It is estimated that for cars over five years old, the depreciation rate may exceed 50%.