MYTH: NEW CARS LOSE 20% THE MOMENT THEY DRIVE OFF THE LOT"The first hit on the car is basically immediate," said Richard Arca, director of vehicle valuations and analytics for Edmunds.
Ultimately, the dealership will plan to sell it for around 4% less than what a new one would go for, he added. What matters more to a dealership? The model year. Your vehicle is likely to retain 60% to 70% of its original value if it is only a few years old. This remains true even if you racked up the miles. Cars that are more than 5 years old are less likely to reach those figures, even if you went easy on the miles.
There are more buyers in the market early in the year, and dealerships need more cars to feed the demand. Also, a used car feels more new when it is eight or 10 months away from turning a model year older rather than just two or four months away. These are good things to keep in mind when you're looking to either time your trade-in or negotiate with a salesperson in March instead of October.