The depreciation of cars is decreasing.

The loss of a car's value is often attributed to human behavior and industry quirks.

The automotive industry closely monitors depreciation, with owners, buyers, automakers, and dealers all taking note of its impact on resale value, lease payments, and overall profitability.

For many decades, the fundamental principles of the auto industry have remained relatively consistent.

The used car market was disrupted by the Covid-19 pandemic, with vehicle production being limited, supply chains facing severe shortages, and fewer new cars being available on lots.

Used vehicle prices were steadily rising for approximately two years, according to Alex Yurchenko, the chief data science officer at Black Book and Motor. This trend was unprecedented in the market.

According to industry analysts, cars are retaining approximately 10% more of their value after three years compared to the pandemic period. It is predicted that this trend will continue.

Watch the video to learn more.