Overhaulin'

Will a new 2008 model car, bought in dec 08, depreciate a lot in Jan2009?

I am about to buy a 2008 model car at 0% financing this christmas. Will the car depreciate by the usual 15% per year in 1 month (from now to Jan 2009). Will my car be valued 15% less once it's january 2009?

Public Comments

1. You're car depreciates the moment you drive it off the lot. Once the car has been titled it is considered a used car.
2. cars usually drop 15-20% the second you drive it off the lot..and with it being the new year and it will be an 08 in 09 then it will drop another 5-10%....
3. Good rule of thumb is, all new cars lose 30% of its value once you drive it off the dealer lot. The depreciation after that depends on the particular make/model. For example, Hondas and Toyotas typically lose 50% of its value (from MSRP) after 4 years. American cars typically lose 70-80% after 4 years. And no, your car doesn't automatically depreciate on Jan 2009. It depreciates everyday. But the value doesn't officially drop until KBB and other valuations publish their valuations every quarter.
4. The first guy has it right, the moment you drive it off, its used. You sign the title, its yours. Even if you trade it in a half hour later, its now used and the value has gone down because of that. Depending on the car, that can be a lot or a little. For example my 08 Honda Civic was bought for around $19,000. If i sell it right now, its current private party value is about $16,250 with only 9000 miles. I bought it in July i believe. So in about 6 months, my car has depreciated about 14.5%. Compare that to a friend.... 2008 PT cruiser Touring with ~6,000 miles Originally = ~$17,000 Current private party value = ~$10,000 Depreciation in <1 year = 42%!!!!
5. The car will depreciate by 15% (if not more) the minute you drive it off the lot. Probably more like 20%. This is one way people end up with negative equity, owing more than they can sell or trade their car for.
6. The car will depreciate more than average because we are in unusual times. There is a gross surplus of cars standing through out the world (beginning to rust), it is better the company sell them even at break even figures than a loss. It is hard to say just how much cars will depreciate (possibly 25%) but to buy new now, just does not make sense!