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Question 13

Auto loans and interest add up, but another less-obvious cost is depreciation — how quickly a vehicle loses value. Depreciation affects resale value and therefore the effective cost of ownership. When comparing models, factor expected resale, fuel efficiency, and typical repair costs. Recognizing the different buckets of cost (depreciation, financing, fuel, insurance, maintenance) is a useful mental model for total ownership planning. This definition question tests which item is tied to value loss over time.

What is vehicle depreciation?

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