Learn 01
The depreciation curve
Why a 3–5 year old car with 30k–50k miles is the best dollar you can spend in the used market — backed by real data.
20.5%
Year-1 loss
avg sedan, off MSRP
42%
By year 3
cumulative depreciation
60%
By year 5
the sweet spot
$8,200
$/yr lost
$40k car over 5 yrs
Why the sweet spot is 3–5 years old
The car has already taken its biggest depreciation hit but still has most of its useful life. You’re paying 40–60% of the original price for a car that will last another 10+ years. The new owner is the one who paid the steepest tax — you get to enjoy the rest.
Sources
- · iSeeCars 2024 Cars That Depreciate the Fastest
- · Kelley Blue Book 5-Year Cost to Own
- · Edmunds True Market Value reports