Car depreciation is the difference between what a car cost brand new and its current market value. The residual value of a car is how much of the original purchase price could currently be recouped by selling the car.
A car is an asset and its market value will usually fall over the first few years as it slides down its depreciation curve and how fast it can depreciate and the overall shape of that curve depends on a whole range of different factors and understanding how these work can limit the effects of depreciation, both as a car buyer and a car owner.
