Buying a Car is considered to be the second biggest purchase after a house. The car depreciation value starts declining when it’s out of the showroom. It’s vital to have adequate information about the factors affecting the car depreciation value and its factors to take steps that help you make sound buying or selling decisions.
What’s Exactly Car Depreciation?
Car depreciation is the difference in the car’s value from buying to selling. It’s the value of the car that starts plummeting. It is affected by the make and model of the car & goes down by 10% the moment it’s bought from the showroom. Another 10-15% drop takes place after completing the first year. Apart from this, it’s generally the wear and tear or every time a new model arrives in the market, making the previous ones obsolete. These factors affect the car depreciation value to a great extent.
Factors Affecting Depreciation Value of the Car
Several factors affect the car depreciation value, and some of them have been listed as follows:
The main factor that affects the car’s depreciation value is the mileage. The more mileage the car has covered, the less its value gets over time. A vehicle covers 15,000 natural miles every year, and the more miles you cover the more the value degrades. Ensure that a few miles are covered to get more value after selling the car. These 15,000 miles are generally applied to regular cars instead of sports cars or luxury cars that aren’t used regularly.
The vehicle’s depreciation value is generally affected by the fuel price. As the fuel price goes down, branded cars become popular in the car market. As the gas prices escalate, customers start moving towards electric and hybrid vehicles.If you’re planning to sell your vehicle check the fuel prices to get an idea of the car’s depreciation value.
Make & Model of the Car
The make and model of the car impact the car depreciation value. Cars that are popular in certain regions depreciate more slowly than in others. Choose the models in high demand in your region to prevent them from quick depreciation.
Routine maintenance impacts the value of the car. A well-maintained vehicle will have a slower depreciation value while the one with bodywork issues or poor interior starts escalating.
Interior & Exterior Condition
No one wants to purchase a vehicle with a poor interior and exterior. Modifications including tints, leather interior, and aftermarket surround sound would convert the depreciation value into appreciation value.
Number of Owners
Not many people know, but the number of owners impacts the car’s depreciation value. The lesser they are, the higher the car value gets.
How To Reduce the Car Depreciation?
Car depreciation value reduces over time, and certain steps can prevent it from going down:
Smart car enthusiasts prefer automatic transmissions over manual ones. Also, they love to invest in vehicles with White, Black, Red, or Silver paint job. If you want to obtain high-resale value and reduce the depreciation value, invest in the car commonly purchased by car enthusiasts.
Use the Vehicle Meticulously
Keeping the car in great condition is vital to prevent its value from decreasing. The fewer the knocks and damages, the lesser the value of the car depreciates.
Lay Emphasis on Cleaning & Maintenance
Keeping the car in a spick and span condition would reduce its depreciation value and maintain its resale value. Take it for regular cleaning & maintenance to grab the attention of the potential buyers. Regular maintenance would prevent engine degradation and prevent the tires from wear & tear. You can either take it to a qualified technician or get quality parts from the car parts and accessories store ‘The Auto Parts Shop’.
The Bottom Line
Several factors affect a car depreciation value, and taking the steps mentioned above would prevent it from depreciation and boost its resale value.