Cars Are Losing Value More Slowly

Cars are depreciating at a slower rate, thanks to market disruptions and a tight supply.

A middle eastern woman looks at a used car for sale.
(Image credit: Getty Images)

If you're car shopping, you may have heard the adage that new cars lose 10% of their value as soon as you drive them off the dealer lot. A new report from CNBC and the automotive research firm Black Book should make car buyers feel a little better about their purchases. They found that the severe supply disruptions during the pandemic and other factors changed long-held car depreciation rules, perhaps for the long term. New cars, the study said, now retain roughly 10% more of their value after three years than was the case in 2019.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Ellen Kennedy
Personal Finance Editor,

Ellen writes and edits personal finance stories, especially on credit cards and related products. She also covers the nexus between sustainability and personal finance. She was a manager and sustainability analyst at Calvert Investments for 15 years, focusing on climate change and consumer staples. She served on the sustainability councils of several Fortune 500 companies and led corporate engagements. Before joining Calvert, Ellen was a program officer for Winrock International, managing loans to alternative energy projects in Latin America. She earned a master’s from the U.C. Berkeley in international relations and Latin America.