Depreciation is the difference between the amount you spend when buying a car and the amount you manage to sell it or trade it for at the end. It is a factor that can be easily overlooked and ignored. However should actually be an important factor when considering a car purchase. We asked the car sales experts at CarBuyerTom who blogs for Sonax.com.au Car Detailing, to explain depreciation and give some tips on how to boost the resale value of any car.
Unfortunately, depreciation is not easy to spot when you first by a car. It can be affected by a whole host of factors including the mileage and condition of a car. It can also vary a lot between different models. Upfront cost can really put people off buying an expensive car. However an expensive car could actually cost you less in the long run than buying a cheaper car that depreciates very quickly.
Here is a “rule of thumb” depreciation guide for used cars
Nearly new cars
Depreciation is at its height in brand new cars. In fact, by the time you drive the car off the forecourt, you have probably lost money on it. Nearly new cars are a fantastic option to reduce wasting money. There are many cars on the market that are just one or two years old.
Five year old cars
Buying a five–year–old car may be an even better option. You won’t get the latest features, but it won’t lose so much in value as a newer car. However this is usually a better option for those who do lower mileage. Your repair bills could be higher if you do high mileage in an older car.
Eight year old cars
By the time a car reaches this age the depreciation of the vehicle is normally complete. However owners run the risk of hefty repair bills that could outweigh the value of depreciation on a newer vehicle.
How to minimise deprecation and boost your car’s resale value
It is difficult to predict what your car might be worth in the future. Depreciation can be influenced by a whole host of factors. However there are certain smart moves you can take to minimise its effect and in turn boost your car’s resale value. To maximise retained value we recommend:
- Keep the car in a good clean condition. This means both body work and the interior should be kept in good shape. Take car whilst parking and opening doors. Make sure you do not smoke, eat or apply makeup inside your car to keep the interior tidy. You can find more from Offroad Power Products to keep your car in top notch condition.
- Keep your mileage down when possible. This is one of the key aspects a potential buyer will look at when assessing your car.
- Make sure that servicing and performance checks (check it out here) are done according to the manufacturer’s schedule and keep the documentation in a file.
- Keep a comprehensive service and repair record which you can hand over when you sell the car.
To get the most out of your used car. Why not get it valued at CarBuyerTom for a quick and easy quote?