Car depreciation is inevitable no matter what car you buy unless it’s a classic, one-off or produced in low numbers. But there are several ways you can stop your car value from losing its value faster.
So here are our 6 tips to beat car deprecation.
It’s all about the brand
Certain brands hold their value better than others. This depends from country to country, and in the UAE; Toyota, Nissan and Honda retain their value better compared to other brands. Japanese cars tend to hold their resale value better followed by select German, Korean and American brands followed by other European and Chinese manufacturers.
According to sources, your depreciation can be as low as 30-40% lower or as high as 50-60% just based on the brand over a three-year period.
Age isn’t just a number
Buying a new car isn’t always the best way to go. Sure it smells nice, and no one else has set foot inside, new cars tend to lose value as soon as it rolls out of the showroom and in the first year, you can lose up to 25% of the value of the car.
Purchasing a car older than a year tends to lose 15 to 20% of their value.
We’d recommend you buy a lightly used car rather than a new one.
Classics are different. Not every car will become a future classic. Those that are are either revolutionary in some way, the first of its kind, one-offs, exceptionally rare, absolutely terrible or has a cult following.
Don’t drive so much
It’s much harder to it is. Keeping mileage can help slow down car depreciation as buyers look for used cars with lower mileage.
Instead of driving to the Cornershop, walk there. Not only is it healthier, but it also keeps your car mileage down. Consider carpooling to work if your colleague’s live close by. Or ask yourself the question, do I really need to leave the house to grab a Karak?
Warranty and Service Packages
Warranty and service packages do expire after a few years or a certain amount of km and having one with your car can slow down the vehicle’s depreciation.
Buyers are always concerned whether or not an issue may occur shortly after purchase, but having a service contract or warranty remaining slows down depreciation.
Extendable warranty is available from official dealers and certain companies, the same goes for service contracts. The latter is more common and is available from third party companies.
Having full-service history is a big plus as it gives buyers a deeper insight into your vehicle, how often it has been serviced, what parts have been replaced, accident history (if any) and where it has been maintained.
Partial service history can also slow down depreciation.
Not keeping any records you increase your cars deprecation significantly as the seller has no clue about the vehicle’s past.
Always keep records even if it is a spark plug change or button replacement inside the cabin. If it is a receipt, save it as it proves you’ve changed something at some point.
As for servicing, always go for the official dealer or a reputable garage when taking it in for a service. When selling, this gives the buyer peace of mind.
Keep it clean
Make sure the exterior is as clean as a whistle. Vehicles that have been damaged will depreciate in value rapidly. That little dent our paint chip can affect the vehicles price.
This goes for the interior as well. Cracked leather and torn fabric can cause the value of your car to drop. Missing dials, broken screens and snapped indicator stalks can cause the value to drop too.
Fixing small issues can have a big impact on the price of your vehicle.
And that’s our list. Have you got any helpful tips we may have missed out on that you would like to share? Comment below.
Main image credit: Depaula Chevrolet