So you’re all excited to buy a new car, and you think you’ve got everything covered, but have you thought about new car depreciation? Sadly, cars are not like wine. They do not increase in value over time. Yes, new car depreciation happens whether you like it or not. The second that a new car leaves the dealer’s lot, it begins to lose value. Almost all cars depreciate in value, but usually not at the same rate.

So when you hop in that brand new car and go zooming out of the dealer’s lot, your car has just lost about 10% of its value. This figure alone should make you think hard about buying a new car. After that, your new car will continue to depreciate by an average of 10-15% each year. However, there are ways to slow depreciation. One of the best things you can do to retain your car’s value is to cover it when you’re not using it. Covers shield your car from dents, weather, and natural hazards. Custom Car Covers features a large selection of custom car covers at 40 percent off retail prices.

Let’s take a look at a timeline of owning a new car for a five year period. Let’s say you’ve just bought a brand new Ford Mustang for $30,000. Once the car is driven off the lot, it becomes “used” and loses a significant portion of its value. You’ve only owned the car for one minute and it’s already worth $27,000. Fast forward one year, and the car is now worth $24,000. By the end of year two, the car is worth $20,500. After three years, you’re down to $17,000. After four, your car has depreciated to $14,500. Finally, after five years of ownership, your $30,000 car is now worth a paltry $12,000.

These facts are prime reasons why people buy used cars. Used cars still depreciate, but when looking at a car’s lifespan, the most extreme depreciation comes in the first few years.