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"Avoiding negative equity when purchasing a car" Tea Time

Updated: Dec 21, 2018

- Use value calculator to verify the value of the car at www.carfax.com/value

- Expected Depreciation value over the course of 5 years

Before purchasing you might wanna consider the value of you car at the time of purchase by visiting the below website.  According to data from Car Fax cars can lose more than 10 percent of their value during the first month you drive off the lot

The value of new vehicle can drop more than 20% after the first 12 months of ownership which is why I will never purchase a new car again.  To be honest I when I purchase my third car in 2014 I just wanted it to be new because it felt like a sense of accomplishment like I can afford a new car.  If I know this I would have never done it because its not a good financial move. 

For the next 4 years you can expect to lose 10% percent of its value annually.