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Why Cars Are Depreciating Assets

July 28th, 2016 Salvage Hunter Auto Parts

There are many large purchases in life that provide a return on your investment and prove to be a good asset. One of those is a home. Overtime, the value of your home goes up based upon market trends and you will gain equity so that you can sell it and make a profit.


Cars on the other hand, depreciate and do so quickly. In basic terms, a depreciated car is an asset that is guaranteed to decline in value over time. Generally speaking, you can’t keep a car for years and then sell to make a large profit, well above what you initially spent.


Once you drive a new car off the lot, it has already depreciated by several thousand dollars and that’s just how it works with cars. Cars don’t get more expensive with age, they get old, they rot and they become of little value. There is not much you can do to keep a car from depreciating.


When does a car depreciate?


Every time you have to “fix” a problem, whether it is from routine wear and tear or an answer, your car depreciates. When you drive long distances, you vehicle will depreciate then too.


Any time any strain is put onto a car, the “silent thief” is there. Depreciation is always lurking and will continue to reduce your return on the investment.


What to do when your car will not provide you with an asset return?


Salvaging your vehicle for the workable and in-demand parts will give you a profit you hadn’t expected. Salvaging makes it worthwhile to hold onto a car for the long haul.


If this is an option you are interested in, contact Salvage Hunter Auto Parts. We are a salvage yard dedicated to selling used auto parts. We can assist you in the process of salvaging parts and making money.



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