One of the benefits of buying used cars Rochester NY is that you do not take a huge depreciation hit like you do when you purchase a new car.
However, depreciation is not a term many people are familiar with or fully understand. If you are considering buying a car, here is what you need to know about car depreciation.
What is Depreciation?
Depreciation is the difference between what you pay for a car and what you could sell it for.
For example, if you bought a new car for $20,000, but can only sell it for $17,000, it depreciated in value by $3,000.
What Causes Car Depreciation?
You can never sell a brand-new car for what you paid for it, because it is now considered used.
As such, when you buy a new car and drive it off the car lot, it depreciates, or loses some value. Cars also naturally lose a bit of value as they age, as they are driven and if they sustain any damage to the body of their car.
Can You Prevent Depreciation?
You cannot prevent depreciation. However, as a car buyer, you can ensure that you are buying a car that is properly priced to reduce the amount of depreciation you may experience when buying a car. Buying a used car over a new one minimizes the depreciation that you will have in a car.
When you buy a used car, someone else has taken the huge depreciation hit that occurs when you drive a new car off the lot for the first time. If you are in the market for used cars in Rochester, NY, let Auction Direct USA help you. Visit us today to check out our inventory.
