In what situation might vehicle depreciation be most significant?

Vehicle depreciation is most significant when the car has increased mileage. As vehicles accumulate miles, they generally lose value more rapidly due to wear and tear, which is a significant factor in assessing a vehicle's overall condition and market worth. Increased mileage often indicates more extensive use of the vehicle, which can lead to mechanical issues and a shorter lifespan. Consequently, potential buyers may view high-mileage vehicles as less desirable, which can ultimately reduce their resale value.

While a brand-new car does experience initial depreciation as soon as it's driven off the lot, the rate of depreciation tends to stabilize over the first few years. In contrast, vehicles that are older may have already undergone significant depreciation, and factors such as demand can influence their value variably. Therefore, mileage plays a direct role in the perception of a vehicle's condition and value, making it a crucial aspect of depreciation considerations.