As soon as you buy a car, it loses value. There’s nothing you can do about this, unfortunately, but there are several ways of reducing the damage. Today, we’re going to look at some simple tips to help you avoid the ravages of depreciation and keep your investment in the best possible shape.
Image credit: Bryce Womeldurf
Don’t buy new
You should wait until a car is at least three years old before buying it if you want to avoid the biggest drop in value. New cars can lose up to 20% of their value as soon as you drive them off the forecourt. And, within three years, you can expect around 50% of the value taken away from what you originally paid. But, if you are the person buying that car after three years, then the price you pay will hold for a while. It drops at a far less alarming rate every year or ten thousand miles.
Choose a better car
Some cars depreciate less than others, so look into this a lot before you choose a car of any kind. As you can see in this list from the Guardian, BMW, Audi, and Mercedes are all amongst the best at holding their value. Use an updated list, and find a local dealer that sells them – you can find Mercedes cars here, for example. You should also look into the models of the cars, too, as well as keeping in touch with trade and industry news.
Get added value options
Another thing that can help your car remain desirable is to choose your options wisely. In general, a good paint colour, leather interior, and a modern satnav will all hold value. And, for small vehicles, even a good air conditioning system will help you make the most out of your investment. Try to avoid anything that personalizes your car. Any modifications you make – such as a wild paint job – will make it harder for you to sell it on at a later date.
Be aware of the environment
Regardless of your thoughts on global warming and change in the environment, you have to remember that many people believe it. So, your gas guzzling giant is going to be much harder to sell than a smaller, eco-friendly option that costs far less to fill at the pumps.
Drive it better
The better you look after your car, the more you will be able to sell it on for – it’s that simple. Make adjustments to the way you drive, and get to know the levels you need for optimum performance. This involves keeping your tyre pressure at the right level, driving at the most efficient speed for your gears, and not driving when you can walk. Mileage is one of the biggest factors of depreciation, so the less you travel, the better price you will get when you sell. Also, try and keep it as clean as possible.
Keep in touch with industry news
As soon as you hear that an updated version of your car is on its way, it might be time to sell it on. As soon as that car hits the market, yours will be seen as outdated. Car dealers tend to offer massive discounts on older models when a new version is on its way. And all that does for you is limit the amount you can ask for when you sell.
We hope this has helped – look after your car, and you will beat the depreciation blues!