Save Yourself Money by Preventing Car Depreciation
It’s a well-known fact that all new cars lose some of their value the moment they’re driven off the car dealership lot. Over time, cars continue to depreciate – some more than others. When buying a new car or looking to get the most out of your current car, you should know what depreciation is and how you can minimize its effects.
What is car depreciation?
Simply put, car depreciation is the difference between the value you buy a car for and the amount you either sell or trade it for. Generally, cars take their largest hit in value during the first year they’re owned and after around three years, depreciation starts to slow.
What factors impact car depreciation?
Although fuel efficiency alone doesn’t determine a car’s depreciation in value, the mpg of a vehicle does play a significant role. Larger vehicles and larger engines require more fuel more often so it’s not surprising that these suffer more in value depreciation. Mileage is something to consider, too. The more miles your vehicle does, the lower its value.
Looking after your vehicle and ensuring you keep it in good condition is the simplest way to avoid massive depreciation in your car’s value.
How can I reduce the effects of car depreciation?
- If you’re buying a new vehicle, buy one that’s in-demand and has lower running costs
- Buy a nearly-new or a used car to avoid the most rapid depreciation
- Keep the mileage as low as possible
- Avoid adding modifications to the car
- Keep a record of all maintenance and servicing done to the vehicle
- Stick to more common car colors (grey, white, silver, and black sell the best)
Car depreciation is unavoidable – but it can be slowed so that you get the most for your vehicle. Finding the right auto insurance for your needs doesn’t have to be difficult. Talk to the team at Jack Stone Insurance Agency to get started on your reliable coverage.