At MotorWorld Lexus, we understand the allure of a new car. It’s a very special feeling, but be aware that after the first year, a new car will start to depreciate, or lose value. Many things can affect this, but you should understand the future value of a new Lexus car before purchasing.
What Is Depreciation?
Depreciation means that something loses value over time. The exact rate and amount of lost value can vary across different years, makes, models, and trims. New cars on average depreciate faster than used cars, at the rate of roughly 20% after the first year and about 10% per year after that.
Why Do Cars Depreciate?
There are several different factors that affect a new car’s value after its first year. As cars age, their value simply falls. This is true for all makes and models. The popularity of different types of cars also factors into their value over time. The more popular and desirable a make and model, their valuation decreases slower than less popular brands.
Mileage and condition are also big parts of depreciation. The more mileage, the faster the depreciation, and the same goes for the overall condition of the vehicle. The more miles on the odometer, the more likely the car needs quite a bit of upkeep.
Also, if the car’s been in any accidents or had more than one owner, the valuation can decrease even further.
Can I Reduce a Car’s Depreciation?
If you have a new Lexus, there are ways to reduce its overall depreciation year by year. Limit your driving as much as possible, preferably to under 10,000 miles per year. Keep up with maintenance and regular oil changes. Keep the interior and exterior in good shape and have it regularly cleaned and you can avoid serious depreciation.
Contact MotorWorld Lexus today and find out more about your car’s value!