The Pain of Car Depreciation

At some point in most people’s lives comes a time to decide whether or not to buy a car. Buying your first car can be an exciting and rewarding experience and many people around the world derive great pleasure from buying and driving cars. For some, cars are an obsession and for others it’s simply a means of transport. Look a bit closer though, or at least from a financial perspective and the car of your dreams can quickly mutate into your worst financial nightmare.

If there's one word that makes any car buyer cringe, it’s depreciation, the devil thorn in every car buyer’s side. Now we know cars aren’t cheap to begin with, so when you fork out every last cent you have and drive your new car off the showroom floor, it’s worth a big chunk less than what you just paid for it. It’s true, depreciation can make you cry.

However, there is nothing you can do about it and your car will lose value over time, this is a fact. Cars are not an investment, they are more like parasites feeding off you as long as you choose to drive them.

The best you can do is to wipe your tears away and enjoy your car for what it's worth. It’s also a good idea to do some reading and find out more about how car depreciation affects the value of a car. The more knowledge you have the better equipped you will be when buying your next car.

Share your thoughts on car depreciation in the comment box below.