From AOL Autos: Which Car IsWorth More? Why the Prius Is Best Mid-Size Sedan For Retaining Value: 10 Best & Worst Updated:2006-08-02 17:41:12 Does It Hold Value? Depreciation Hits and Misses By ERIC PETERS Understanding depreciation rates -- how well or poorly a vehicle retains its value over time -- is key to making a smart buy because it will affect how much (or little) you'll recoup at trade-in time. Depreciation rates also affect lease terms -- and can get you into big trouble over a new car loan, potentially leaving you owing more on the car than it's worth. The average vehicle loses about 10-20 percent of its value in the first year of ownership -- but some lose as much as half their value before they're three years old. And that can leave you "upside down" on your new car loan -- insider lingo meaning you owe more than the car's actually worth. General factors affecting depreciation rates include the vehicle's track record for being well-built and reliable, as well as the overall reputation of the brand of the vehicle. Consumer demand for a given vehicle also plays a large role in determining how well it holds value. Owners of undesirable models -- for example, Pontiac's ill-starred Aztek van -- can see the net worth of their vehicles plummet faster than the Dow Jones in 1929. Full Article
