Tips To Minimise Car Depreciation

//Tips To Minimise Car Depreciation

Tips To Minimise Car Depreciation

Useful Tips To Minimise Car Depreciation

How To Minimise Car Depreciation

Car depreciation is defined as the difference between the value of a car when you buy it and the value of a car when the time comes to sell the car.

As you may be aware, when you drive your brand new car off the forecourt, the car has already lost some of it’s value. If you have ever tried to sell your car back to the dealership you will be aware of the the rate of depreciation in the the cars value.

This drop in value varies between makes and models, but typically is between 15-35% in the first year and up to 50% or more over three years.

Factors to Consider:

1. Keep mileage low.
2. Keeping your car in good condition and repair damage as soon as possible.
3. Buying a used or nearly new car helps avoid a steep rate of depreciation.
4. “Boy Racer” modifications can play a factor in the rate of depreciation.
5. Car sales can be seasonal – if you own a 4×4 selling it in the winter can help or if you own a convertible maybe think about selling in the summer.
6. Choosing a car that is a popular colour, may not put off any future buyers.
7. Lease instead of owning, means depreciation is included in your monthly repayments.
8. Do plenty of research before buying a car – check the value of older models and vehicles from similar manufacturers.
9. If you are choosing options – choose the right ones. Metallic paint and leather will keep well over time.
10. Having a full service history puts potential buyers minds at ease. Keep all documents relating to your car in a safe place.
11. Selling your car before the latest model arrives in the showroom can help reduce the rate of depreciation.

By | 2018-10-15T23:17:12+00:00 October 12th, 2018|Our Blog|