Volkswagen Passat | Depreciation Rate & Curve Graphed

The first factor that contributes to depreciation is a car’s age, which is closely tied to its model year. The model year refers to the year tied to the model’s release, typically the year after it officially enters the market. This means if you’re shopping for a brand-new Passat in 2023, you’ll likely be looking at vehicles with a 2024 model year. This impacts depreciation because cars begin to lose value immediately after purchase, and they continue to depreciate quickly for a certain number of years before depreciation slows.

The body type of a vehicle is another detail that impacts depreciation. There are a number of different body types, including pickup trucks, sedans, convertibles, and SUVs. This is important to know when thinking about depreciation, because various body types hold their value more effectively than others, especially in specific climates.

For example, while smaller vehicles, such as hatchbacks and sedans, typically maintain their value well, they’ll likely lose value faster than more rugged body types, such as SUVs and trucks, in harsh climates with frequent precipitation and extreme weather. As a sedan, the Volkswagen Passat usually holds value well, but it may need extra attention if you keep it outside in the snow and rain.

A car’s mileage refers to the distance it’s been driven, as shown on the odometer. We base our models on vehicles with 12,000 miles per driving year, as this is widely considered to be average use in terms of mileage. When a car reaches a high mileage, it can depreciate more quickly, as a car that’s been driven frequently can have a higher potential for costly repairs and breakdowns. For instance, if a car reaches close to 200,000 miles, it may be nearing the end of its useful life, which can increase depreciation even after multiple years of ownership.

If you want to preserve the value and condition of your Volkswagen Passat, pay attention to the mileage it accrues. Try driving your car less frequently to reduce the number of miles it takes on. If you drive your car often, it’s likely that depreciation will continue at the standard rate or even increase as it gains more miles.

A car’s overall condition refers to how effectively it runs and how presentable it looks on the exterior and interior. If you take great care of your vehicle, you can likely keep its condition great so that it maintains its value well. In contrast, a vehicle that shows obvious signs of wear or damage will likely have a quicker depreciation rate. This is because a vehicle in poor condition can call for more maintenance than usual, which adds to the cost of ownership.

While all vehicles need routine maintenance to function and stay in good condition, too many extreme repairs can weaken the vehicle overall and show that it doesn’t hold its condition well. This means that if you keep up with your Passat’s normal maintenance schedule, you’ll help preserve its condition and, as a result, its resale value. In cases where a vehicle needs an overwhelming number of repairs over a short period of time, you might think about buying a new vehicle instead of putting more money into your current one, as it may continue to depreciate quickly after the repairs.

A car’s color can also impact its depreciation rate, as certain paint colors hold their value better than others. A recent study showed that yellow cars seem to maintain their value the best out of any color, with shades such as beige, orange, and green following closely behind. In contrast, colors such as gold, brown, black, and silver showed the quickest rates of depreciation.

This is largely due to the demand that certain car colors see, since more unique colors such as yellow and green see higher demand, as there are fewer on the market. For subtle shades, the demand is typically consistently low, as neutral tones are popular choices for people buying models brand new.