Chevrolet Equinox | Depreciation Rate & Curve Graphed

A car’s age is determined by its model year, which is the year demoting a vehicle’s generation and pricing, and can affect a vehicle’s depreciation. This is because the resale price of a car drops drastically as it continues to run for multiple years. A car that’s many years old can have multiple owners throughout that time, which can cause more depreciation as the vehicle changes hands and possibly has more repairs. Many older vehicles can be more difficult to maintain, as they sometimes use parts that manufacturers no longer produce, reducing the overall value due to increased repair costs.

Classic cars are a notable exception to this pattern. Many collectible vehicles, such as the Aston Martin DB7 and the Porsche 924, hold high value even when they’re very old. This is due to the high demand these vehicles usually have, as more of them won’t become available over time.

Another factor that can affect a vehicle’s depreciation rate is its body type. The body type refers to the shape and size of the car. Vehicles come in a variety of types, and each of them maintains their value and usability at different rates, especially in varying climates. For example, in an area that experiences heavy precipitation and varying temperatures, an SUV such as the Chevrolet Equinox will typically hold its value more effectively than a small, compact sedan.

Some body types also historically have better fuel economy than others. This can impact depreciation as well since cars with low fuel efficiency can have a lower resale value due to the higher cost of fuel during ownership.

The recorded mileage on a vehicle can also affect the depreciation rate, especially if it’s been driven for hundreds of thousands of miles.  Most vehicles require maintenance more frequently after they’ve passed a certain mileage, meaning you can typically see a higher resale value when selling or trading in a vehicle that has fewer miles on the odometer.

For instance, a Chevrolet Equinox with 12,000 miles will likely be valued higher than one with 150,000 miles, even if the Equinox with higher mileage is a more luxurious trim level. If you want to try to reduce how quickly your car depreciates, you can drive it less frequently to keep the odometer from rising too quickly.

A vehicle can experience varying amounts of general wear and damage from accidents throughout its life. When a car undergoes multiple repairs, it can be more likely to break down or show issues in the future that cost even more money to fix. Therefore, the overall condition of a car can cause it to depreciate either more quickly or slowly. When a car maintains excellent condition, its resale value is often higher than similar models in worse condition.

When you’re getting ready to purchase or sell a used car, inspect its condition thoroughly. Check for scratches or missing parts on the exterior and stains or tears in the upholstery on the interior. You can also verify whether all the features on the car work properly. All these imperfections can accelerate a car’s depreciation.

Even a vehicle’s color can have an impact on how quickly it depreciates. For example, a study found that yellow cars seem to depreciate more slowly than other vehicles, at a rate of around 60% less than other colors. There are a few other colors that hold their value the best, such as green, beige, orange, and red. The colors that seem to depreciate at a higher rate include generic shades, such as white, black, and gray. This is likely because the market is more saturated with these options since they’re often the most popular among customers who purchase new vehicles.