Do cars lose value by years or months? I guess basically what I'm asking is should I expect a car to be considerably cheaper in january of 06 rather than now?

 

Depends on the car on the market for it. Sports cars will probably be a tad cheaper in the winter since the demand is low...however, most people probably aren't selling cars in the winter either so the suppy/choices might be lower.

And to answer the depreciation question, it probably goes by months...I'm sure the car is worth a bit less every month although it might not be much.

 

The timeframe is just one coefficient that determines the depreciation of a car. It also depends on mileage, condition of the car, and mostly importantly the market. You could expect all cars to depreciate unless it is supercars like Enzo or CGT.