Everyone needs a trustworthy vehicle to get from one place to the other. When the time comes to purchase a vehicle, the new car smell is very enticing. Unfortunately, as soon as it’s driven off the lot, the car begins to lose its value. Why is this?
When a dealership that sells new cars, they get a shipment of vehicles from a manufacturer, they pay a wholesale price for them. To make a profit, they add a certain percentage to that price. The amount that the consumer pays is the retail price. As soon as the buyer drives off the lot in a new car, the value drops down to the wholesale price. Since it is no longer new, it can’t be resold as one.
Wear and Tear
As a vehicle ages, the paint will chip, the upholstery will begin to show wear and the internal workings will …