Depreciation

A term to describe a vehicle's loss in value over time. Unusual or striking cars built in small numbers tend to lose little (if any) through depreciation, while fleet cars and family cars usually drop heavily in price after only a few years.

Buyers looking to purchase a new car should look for one that will have a low level of depreciation, while those wanting to buy a second-hand car are better off with a vehicle that has a high rate of depreciation; in this way the worst of the depreciation will have already taken place.