Used car depreciation is getting out of control

Here's some news: Your car is going to be a worthless piece of scrap metal sooner than you think! Hooray!

According to Bloomberg, Black Book has analyzed the user car market and discovered that the value of the average used car dropped 17 percent in the last year, so, you know, good luck with your trade-in. The culprit behind the collapsing used car market? Too many new cars. CEO of  KAR Auction Services Inc., Jim Hallett, said,

"We've got ourselves in an oversupply situation. Nobody is interested in stockpiling inventory right now."

Of course, not all cars are depreciating at the same rate, and chances are that your prized daily isn't completely useless yet, especially if you own a pickup. Small and full-size pickups only depreciated about 10 percent last year, whereas luxury and sub-compact cars broke the 20 percent mark. The fact that luxury cars depreciate the most is just dripping with delicious irony.

The overwhelming supply of new cars also points to a much larger issue, waste and pollution. If no one is buying these used cars then their rusted-out carcasses are either going to end up haunting the side of the road or somebody's backyard.

So do your wallet and the planet a favor, next time you find yourself in need of a new car, take advantage of the awesome prices on the used-car market and get something a few years older. Chances are you'll score something nicer than you'd be able to afford new anyway.

H/T: Kyle Stock