Used Car Prices Expected to Drop in 2015
Good news for those considering buying a used car this year - vehicle depreciation is expected to speed up in 2015 due to increased used car inventory and other factors, according to a new report from Black Book.
The annual depreciation rate for used vehicles in 2014 was 12.1% and that number is expected to rise as high as 14.5% in 2015.
An article on Cars.com says these depreciation rates may seem high, but in reality the levels are going back to normal following very low depreciation rates of 7.7% in 2011.
The report also takes a look at quarterly and annual depreciation by vehicle segment. For instance, luxury cars had the highest depreciation at 18.1%, while some vehicles -- such as full size van wagons -- actually appreciated by 3.5%. Below is a copy of the 2014 Depreciation Rates by Segment chart from the Black Book report.
My Recommendation for Car ShoppersTrueCar, Edmunds, and 1-800 Car Show are the quickest way to see the lowest car prices in your area. These sites show you no-haggle prices from dealers closest to you - and the deals are usually really good. This should be the first step you take when negotiating your car price. Follow this up with my checklist to make sure you squeeze out every last bit of savings.
New York Tri-State Residents - Important:There is a new car leasing service called Carvoy, available to NY tri-state area residents, which I recommend you try - especially if you hate the stress of haggling with car dealerships. Carvoy provides pre-negotiated lease deals, calculated with taxes and all fees incuded so you know exactly what it will cost. Here is my list of Best Carvoy deals, updated each month.
- Gregg Fidan
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About: Gregg Fidan
Gregg Fidan + is the founder of RealCarTips. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals.
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