CALIFORNIA, USA — There's nothing like the smell and look of a new car. Of course, once you drive it off the lot, it's no longer new.
It looks and smells the same, but the top value is gone once you hit the street.
A new car will lose 20% to 30% of its value in the first year, according to Kelley Blue Book. If you're out shopping for a new car and concerned about this, you're likely wondering "Why?"
First of all, there are many ways you can help your new car hold its value. Make sure the exterior is scratch-free.
"People hold their keys, maybe pocket knives. Some ladies like to keep their nails long. That can scratch the door handle area. That's the first thing people will see," said Zak Simmons of Carvana.
When it sits in the lot, each car has a sticker with the “Manufacturer’s suggested retail price." The minute a new car rolls off the lot, it’s now a used car.
Nobody is going to buy a used car for the suggested price of a new one. Over time, a car depreciates. Part of that is the mileage you put on it. Also, next year's new models usually have updated technology that your car doesn't. That also can affect your car's value,
The folks at Carvana also say that washing and waxing your car and maintaining it will help your car keep its value and save the service records too.
What's not recommended is covering your car. According to Simmons, It can keep stuff on your vehicle that you don't want including trapping water, and leaves and degrading and damaging your paint.
Are you looking to buy? According to the Kelley Blue Book, models that hold their value the best include Toyota, and Porsche tops in that regard. Honda and Lexus are also near the top of the 2024 list.
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