Shopping for a used car means thinking in the long term. Motorists have to consider more than just the car's appearance or how fits into their current situation: They also need to make sure the vehicle can adapt for the future, providing excellent resale value, fuel economy and more. <\/p>\n
One major element in this is the rate of depreciation, or a decrease in the car's value. Depreciation is normal and unavoidable, but there are certain conditions that play a role in how quickly or slowly a car loses its worth.<\/p>\n
The NADA Used Car Guide keeps track of the average rate of depreciation in all vehicles, and the service found that there was good news to report in November. That month, the average rate decreased to 1.5 percent, which is a significant drop from the 3.5 percent rate in October. That is good news for drivers, who can retain value in their vehicles for longer periods of time. <\/p>\n
"November's decline in the rate of depreciation can be credited to favorable market conditions, lower unemployment, moderating gas prices and advantageous credit conditions, including the end of the federal government shutdown in October," said Jonathan Banks, executive automotive analyst of the NADA Used Car Guide. <\/p>\n
Depreciation can lead to lower prices for used cars, but it also limits what a driver may get for a vehicle in the future. This double-edged sword can be difficult to handle for those who are unfamiliar with the statistic, but knowing that value holds strong is good news regardless. <\/p>\n