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Sedans Are Rapidly Depreciating And Here' s Why
Sep. 18, 2018 12:35 PM ET by Jay Traugott / 7 Comments The cause will probably not surprise anyone. It wasn't so long ago when sedans were among the best-selling auto segments in the US, alongside pickup trucks and traditional SUVs.
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And then came the crossover, the sedan-based body style that combines the look of a trendy SUV with car-like fuel economy. It was and remains a winning combination while sales of traditional sedans have declined so much that Ford has made the bold decision to discontinue them entirely in the US. According to AAA's annual Your Driving Costs study, America's craving for crossovers is not only confirmed but is also causing sedans to depreciate in value at faster rates.
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Zoe Mueller 1 minutes ago
For example, in the past year alone sedan depreciation costs have increased up to 13 percent compare...
For example, in the past year alone sedan depreciation costs have increased up to 13 percent compared to last year. There is, however, one type of traditional car body style that's holding up pretty well, those with hybrid or electric powertrains. These eco-friendly cars, like the Chevrolet Volt, Toyota Prius, and Tesla Model S have experienced decreased depreciation rates.
But what many don't realize, regardless of what type of vehicle you buy, is that depreciation accounts for almost 40 percent of the cost of owning a new vehicle. Buyers need to bear in mind a vehicle's resale value and not just the purchase price.
In 2018, AAA's study found that the average cost to own and operate a new vehicle came to $8,849 per year. Factors such as fuel costs, maintenance, repairs, insurance, registration fees, depreciation and loan interest were all taken into account. If you don't intend to keep the new vehicle for long, it's best to consider a lease.
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William Brown 6 minutes ago
But if you do intend to buy, it's best to keep the vehicle for a long time and properly maintain...
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Noah Davis 6 minutes ago
The numbers can be startling, especially when compared to a new vehicle's price tag. So, which i...
But if you do intend to buy, it's best to keep the vehicle for a long time and properly maintain it or, alternatively, buy a certified pre-owned vehicle and do the same. Remember, a new vehicle typically depreciates more than $3,000 per year.
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Jack Thompson 9 minutes ago
The numbers can be startling, especially when compared to a new vehicle's price tag. So, which i...
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Jack Thompson 5 minutes ago
Small sedans. Yes, really....
The numbers can be startling, especially when compared to a new vehicle's price tag. So, which is the most affordable vehicle segment?
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Ryan Garcia 17 minutes ago
Small sedans. Yes, really....
Small sedans. Yes, really.
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Oliver Taylor 11 minutes ago
The study found the average cost for a small sedan, such as the Hyundai Elantra or Honda Civic, came...
The study found the average cost for a small sedan, such as the Hyundai Elantra or Honda Civic, came to $6,777 annually. A hybrid costs an average $7,785, while small SUVs ring up to $7,869. Electric vehicles come next with an average of $8,384.
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Liam Wilson 5 minutes ago
Next, come medium-sized sedans, such as the Honda Accord, at $8,866. At the top of the range comes p...
Next, come medium-sized sedans, such as the Honda Accord, at $8,866. At the top of the range comes pickup trucks with an average annual cost of $10,215.
Buy wisely. Honda
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Ethan Thomas 8 minutes ago
Sedans Are Rapidly Depreciating And Here' s Why CarBuzz News Features New Cars Used Cars Sell M...
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Sofia Garcia 26 minutes ago
And then came the crossover, the sedan-based body style that combines the look of a trendy SUV with ...