Did you know that if you buy an “average” new vehicle today, you will almost certainly pay more in depreciation than you will on gas or diesel over the next 5 years?
According to Kiplinger’s personal finance, the average new car loses 60% of its value over the first 4 years of ownership. If you pay the average price of a new vehicle sold in the U.S. of $28,400, as reported by the National Automobile Dealers Association, you are losing $17,000 over this 4 year period.
The depreciation on the average new car is costing the consumer $4260 per year or $82 per week! If you drive your vehicle 15,000 miles a year and average 18 miles per gallon, your only going to pay $80 a week in gasoline with gas priced at $5.00 a gallon!
These figures are based on averages and your individual expense may be less or more, but the bottom line is this: If you are looking at buying a new vehicle, and you are willing to pay the associated costs, go ahead! Just remember that the high price you pay in fuel, will likely have nothing on the fortune you will lose in depreciation.
