ARE you thinking of buying a new car? If so, one thing you should take into consideration is car depreciation. It’s surprising just how quickly the value of a new car drops the minute you drive it out of the dealership. While the amount of depreciation depends upon the make and model of the vehicle, all cars lose some of their value over time. The good news is there are ways you can minimise car depreciation and below you’ll find some of the best tips and advice.
Understanding depreciation
Before taking steps to minimise car depreciation, it helps to know exactly what it is. Basically it is the difference between how much you paid for the car and how much it is worth when you want to sell. On average, the Money Advice Service claims depreciation within the first year of ownership ranges from 15% to 35% depending upon the car. After three years this increases to 50%. A number of things determine how much depreciation your car suffers. So how can you minimise the amount of value lost?
Choosing a reliable car
Some models are known to be more reliable than others. If you’re unlucky enough to invest in a car that breaks down frequently, it will suffer more depreciation than others. There are reliability surveys available online which can help you to choose the most reliable model. Also, if the car is known to be reliable by reputation, there will be a lot of demand as it is one thing buyers really look for.
Have the car serviced regularly
Making sure you have the car frequently serviced will also help. A buyer will want to look at the logbook and service history to check whether it has been well looked after. If it has, you can get away with charging a decent price. A well-serviced car can make a lot of difference when it comes time to sell.
Always ensure you get a good deal
This is a great tip for first time buyers in particular. When buying from a dealership, the sales people are extremely good at enticing you in and getting you to pay more than you should. There is always room for negotiation. What Car? Has a fantastic database of new car prices which lets you know the maximum you should be paying out for each make and model. Take a look at this before you head out to the dealership. Haggle down to the figure you’ve read if necessary – the seller will have some ‘wriggle room’.
Be safe
You car will hold its value much better if you’re a safe driver. For learners that means paying as much attention as possible to the lessons of the instructor and keeping those in mind as you go off on your own. Also, make sure you thoroughly learn the rules of the road and, if necessary, return to free online resources to refresh your knowledge on any signs or road markings that you have forgotten. Older drivers shouldn’t be sucked into thinking this doesn’t apply to them either. It’s free and easy for everyone to refresh their driving knowledge – we all need to get back up to speed from time to time.
If you look after your car and avoid accidents it’ll be in the best condition possible to avoid too much depreciation.
