It is said that the moment you drive your new car off the lot if has lost a good percentage in value. As long as we believe this to be true, it is true. What measurable things have happened to the car in the first 100kms that make it lose so much value? Even a bad driver would be challenged to burn out a clutch in this period of time. Even within the first year, provided maintenance is properly done, the real value of the car does not drop that much. Depreciation is not a straight line as the likelihood of part failure increases with age, but the notion that a one or two year old car has lost 50% of its value is nonsense. People pay a premium to drive a new car, but I feel that the premium is too steep. The initial depreciation on a car serves only the dealers who might have more one year old used models on their lots if it weren't there. What is the real value of a six month old model or even a two or three year old model that has been maintained?