Investing in a car is one of the big investments that you will make apart from owning your own house. Therefore, you must take good care of your car and minimize its depreciation. This will help you to attain a good value when you decide to sell your car in the near future. If you do not know what depreciation means, it is the difference in value of the car when you bought it against the value of the car when you decide to sell it.
To be honest, the value of your car is depreciated when the minute you drive it out the garage door after buying it. That is the reality. If you have ever tried to resell your car to the dealership, you would know the rate of depreciation in the value of the car. The rate of depreciation differs from car to car and model to model. However, it typically lies between 15 to 35 percent in the first year and around 50 percent or more over three years.
In this article, our cash for cars experts we will discuss some of the key factors to consider for minimizing the car depreciation.
Factors to Consider
1. First and foremost, you should always try to keep your car in the best possible shape and repair damage as soon as it happens. This will help you keep the value of your car at its optimal in the long run.
2. If you want to avoid a steep depreciation rate, do not buy a brand new car. Go for a used or a nearly new car. These are a better choice as compared to a brand new car.
3. If you are making modifications to your car, avoid them. Modifications will increase the rate of depreciation exponentially.
4. Try to keep the mileage of your car as low as possible.
5. Buy a car with a colour that is extremely popular among car buyers. This will help you sustain the value of your car when the time comes to resell it again.
6. Before buying the car, make sure you do thorough research. Do not forget to check the value of older models from the same manufacturer.
7. Selling the car can be a seasonal affair. If you have a 4x4 car, try to sell it during winter. If you own a convertible, try to sell it during summer.
8. If you are choosing options in your car, make sure you choose the right ones. Leather and metallic paint will help you keep the car in good shape over a longer period.
9. Maintain all the documents related to the servicing history of the car. This will help please the mind of the potential buyer.
10. If you sell the car before the new models are available in the showroom, it will help you to minimize the depreciation value.
All of these factors should be kept in mind if you want to resell your car at a good price in the near future.