Cars start to lose value as soon as they leave the forecourt with most cars losing between 15 and 30% after just the first year. The rate of depreciation slows after this, but it still means that you are taking a financial hit anytime that you buy new or used and sell down the line.
Why Depreciation Occurs
Cars depreciate due to new cars constantly being released and making these older models less desirable. Depreciation also occurs because cars lose quality and reliability over time, which means that you will get less than what you paid when you look to sell. Although depreciation is unavoidable, there are a few steps that you can take to slow the rate and this could see you recoup much more when the time comes to sell.
Choose the Right Car
First, you should always look to buy automobiles that retain their value. There are certain brands and models that are known to depreciate at a much slower rate than others, largely due to their desirability. It is worth investing in these cars as they could stop you from losing as much money when you look to sell down the line. Buying used will see you sidestep the biggest depreciation hit and, with a wide range of used cars online, it should not be too hard to find one that holds its value well.
Protect the Vehicle
Protecting the vehicle can also help to slow depreciation. Imperfections will deter potential buyers and give them grounds to negotiate a lower price, so you should wash the car frequently and consider using PPF to protect the paintwork.
Maintenance & Servicing
As you might expect, keeping the car in the best possible condition is also important for preserving the value as much as possible. This means that you should be conducting basic car maintenance throughout the year and getting it serviced annually. You should also keep hold of receipts, invoices, the service history and any other documentation to help with the value of the car.
Keep the Mileage Down
Cars with fewer miles on the clock will always sell for more, so you should try to keep your mileage down if possible (this will also keep the car in better condition). You could look to walk/cycle or use public transport instead, which would also help to lower your car running costs too.
Every motorist needs to be aware of depreciation as it can see you lose out on a large sum when the time comes to sell your car. Fortunately, there are ways to slow down the rate of depreciation by choosing the right car, keeping it in the best possible condition and keeping your mileage down and hopefully this will help you to maximise the resale value.