Group 1: Car Loan Trends - The average loan for a new car in early 2025 was $41,720 at an interest rate of 6.73%, resulting in monthly payments of $745 over five years [1] - The average loan for a used car was $26,144 at an interest rate of 11.87%, leading to monthly payments of $521 over five years [1] Group 2: Legal Commitments in Car Purchases - Once a buyer signs a contract and makes a down payment, there is no legal cooling-off period, and the buyer is obligated to fulfill the agreement [4] - Losing a job does not constitute a valid reason for canceling the car purchase agreement, as the car begins to depreciate immediately after the title transfer [5] Group 3: Challenges in Cancelling Car Deals - Unwinding a car deal is complex, requiring the dealer to cancel financing, complete paperwork, and ensure the car retains its new status to avoid value loss [6] - The dealer must also refund any money from trade-ins, adding to the administrative burden of reversing a sale [6]

Core Insights - Electric vehicles (EVs) depreciate significantly faster than gas-powered cars, with an average depreciation of 58.8% over five years compared to 45.6% for all vehicles [1][4] - The Honda Prologue, an electric SUV, has a projected depreciation of 49% after three years, with a resale value of approximately $29,701 [5][6] - The depreciation rates for various EV models vary, with the Jaguar I-PACE experiencing the highest average depreciation rate at 72.2% [5] Depreciation Factors - Rapid technological advancements in EVs, particularly in battery technology, contribute to faster depreciation as older models become outdated [6] - Concerns regarding battery life may also affect resale values, despite federal warranties of eight years or 100,000 miles for EVs [6] Financial Implications - The financial burden of car loans can lead to significant debt, as illustrated by a case where a couple owes $110,000 in car debt alone, alongside $62,000 in credit card debt [3][10] - Financial advisors recommend that monthly car expenses should not exceed 10% of monthly income to avoid becoming "car poor" [7][8] Recommendations for EV Buyers - Potential EV buyers should explore local or state incentives, as well as rebates from automakers, to mitigate costs [9] - Consideration of home charging installation costs and the availability of charging stations is crucial for prospective EV owners [10]

Your car starts to lose value the moment you drive it off the dealership lot. You can blame car depreciation, which is the decrease in value that most cars experience over time. Some car depreciation is unavoidable, but you can also reduce its effects. Certain makes and models depreciate at a much faster rate than others. Also, by practicing good driving habits and keeping up with maintenance and repairs, you may be able to minimize the pace at which your vehicle depreciates. We’ll walk you through how to ...