What depreciation means
Depreciation is the decline in a vehicle's market value over time. It is not a bill you pay each month, so it is easy to overlook, yet it is realized the moment you sell or trade a vehicle.
Understanding the curve helps you plan how long to keep a vehicle and what it may be worth at different points.
Why the early years matter most
Value usually drops most sharply in the first one to three years. A vehicle transitions from new to used, and buyers price in that change.
After the steep early period the decline tends to flatten, which is why many owners consider vehicles that are a few years old.
Vehicle age versus mileage
Age and mileage both affect value, but in different ways. Age reflects model updates and material wear over time, while mileage reflects mechanical use.
A low-mileage older vehicle and a high-mileage newer vehicle can land at similar values for very different reasons.