Dollars & Sense: That new car smell still costs you, just not how it used to

ORLANDO, Fla. – With the average price of a new car hitting over $50,000 for the first time ever , does the old saying that a new car loses roughly 15% of its value as soon as it is driven off the lot remain largely true in 2025?

Yes. No. Kinda? Sounds like we need a lesson in car depreciation – class is now in session.

Let’s start with a definition of vehicle depreciation: Think of it as your car’s loss in resale value – what it’s worth now versus what you paid for it. Next, the 15% myth: has anyone ever bought a new car and tried to sell it the same day? With that said, the adage of your new car is worth 15% less as soon as you drive it off the lot really isn’t true. What is true: in the first year , on average, you can expect your car to depreciate at about that same rate (15