Question

Which of the following statements is correct?

a.) Cars typically lose the most value in the first year after purchase.
b.) Houses will always appreciate in value over the long-term.
c.) Both A & B
d.) Neither A nor B

Answer 1

Cars typically lose the most value in the first year after purchase.

Answer 2

Correct statement is A, Cars typically lose the most value in the first year after purchase.

The above statement is true, because car manufacturing companies launch their new models every year and the price of the last year model drops significantly. Because people prefer new model over the old one. So the demand of the old model decreases and thus the prices drops within the first year of the launch of the car.