Car depreciation is an issue that we all face as vehicle owners, with new cars most prone to drastic value loss over the months and years since the first time you started your engine. While it’s almost guaranteed that you won’t get as much for your vehicle as you paid out for it, there are a few things you can do to minimise just how much value the vehicle loses over time. We’ve gathered some below to help you get started.
What Is Vehicle Depreciation?
Depreciation is, quite simply, the difference between the amount that you paid for the car originally, and how much it is worth now. Most cars will lose around 50-60% of their overall value in the first three years of ownership alone, though the rate at which the value drops will ultimately depend on a few key factors – this includes price, running cost and the quality of the vehicle. Depreciation is always going to happen with any vehicle, whether brand new or second hand, however understanding how it works and which vehicles are the worst for losing value can help you not only manage expectations but adjust how you’re looking after your vehicle to improve its value overall.
How To Minimise The Depreciation
There are a few key things that affect not only the value of a vehicle but how fast it loses value overall. Anything from the mileage of the vehicle and the condition of the car, to how many owners it’s had and the available service history, can all make or break the value given when you try to sell. Thankfully, many of these things are completely manageable:
Watch The Mileage
To put it simply, the higher the mileage on your vehicle, the lower the value it is likely to get. On average, people drive around 10,000 miles a year as standard but for those of us who typically drive more, this can be detrimental to the value. The logic sits in that the more a car has been driven, the more likely it is that something could go wrong and while this makes sense, it can still be frustrating for those of us who travel a lot. The answer is to try and minimise your mileage as much as possible, whether that’s popping to the shop on foot rather than driving, or hopping on the bus a few times instead.
Keep Your Car In Good Condition
The condition of the interior and exterior of your car plays a huge part in the value, and understandably so. When buying a car, we want to pick up the best looking model we can. Cars with bumps, scratches, stains or weird smells aren’t typically at the top of our lists, which is why it’s important to take careful care of your vehicle. Making sure that you drive carefully to avoid bumps and scratches is a good starting point, as well as repairing any bodywork issues that do come up, but you should also make an effort to keep the vehicle clean. Regular vacuuming will help to reduce dust and debris working itself into the carpet, and the use of fabric sprays and air fresheners will fight any unusual smells and keep things fresh and pleasant. You should also avoid smoking, eating and drinking in your car if you can to reduce smells or stains.
Maintain The Service History
Getting your car serviced is a crucial part of owning a vehicle not only for value later down the line, but to ensure that you are driving a safe and road-ready vehicle. Car buyers want to purchase a reliable and trustworthy vehicle and having a full and maintained service history will provide proof that everything is running as well as it should. You could add to this by providing a full history of any maintenance or works that have had to be done, from changed tyres to engine repairs so that the buyers can get a full picture.
Drive Safely
You should be driving safely anyway, but by taking additional care with how you drive, you can really keep on top of the condition of your vehicle. Accidents, both minor and major, can speed up the depreciation of your vehicle, particularly those that are reported to your insurance company. The company will add the accident to the vehicle’s history report, so this can’t be avoided. Your best bet is, quite simply, to drive as safely as you can. This could also improve the lifespan of your brakes, engine components, clutch and more.
Avoid Non-Standard Modifications
Adding a dashcam isn’t going to do much to affect the value of your vehicle, but non-standard and major modifications to the vehicle, such as a turbocharged engine, can really bring the value down rather than up in most cases. Even an elaborate sound system can make the vehicle appear less valuable to prospective buyers, so it’s best to avoid making these modifications where possible or make them easily removable without affecting the wiring or electrics in the vehicle.
When You Sell, Sell Private
Finally, when you do come to sell, selling privately can really help to give you better value for money. Selling to dealerships or sites such as WeBuyAnyCar can mean you lose a significant amount of value over something as simple as a little dent in the paint. Selling to dealerships and similar websites can get the process done faster, but often at the cost of losing out on value. Selling privately will give you a better opportunity to haggle, negotiate and get the price that you want (within reason) for the vehicle.
For more information about maintenance schedules for your vehicle or to book in for a service or repairs, get in touch with a member of our team, today.