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They depreciate because there is always supply. If they stopped making cars at this very moment, your car would probably cease to depreciate. Rare cars appreciate because there are enough people who want them yet there is not enough of those cars to go around, thus creating a market for them. It will always depend on how much they are willing to pay for that classic car to be part of their collection.

Because people like you would rather pay $25k for a brand new car than a 10 year old one.

Cars have limited useful lives. Pretty much everything with a limited useful life depreciates. (Goes down in value)

They depreicate because they do quit working. Mechanical failure and body/interior damage.

Appreciate value are for rare cars or custom made, custom upgraded rides. A 1950s car with 200 miles kept in a garage for it's whole life with perfect paint; will be worth a bunch more than the same car with 150k with rust and color fade all over.

Through normal use a thing wears out. If a certain car is kept in new condition long enough, fewer of the cars built along with it will be left, as most will wear out from use. Because it becomes rarer as years go by, it becomes more valuable simply because there are fewer just like it.

Why is a 68 yr old less attractive than a 20 yr. Old everything wears out gets loose becomes less attractive and is not working like Wynn it was new.

A man buys a new tv for $680.00. A year later he wants to sell it for the same amount he paid for it but now its used and you can buy the same set new for the same $680.00. Thats depreciation.

Some cars appreciate due to their original poularity or limited production.