Did you know that new cars can lose around 20% of their value in the first year after it was bought, and will lose around 50% of their initial value in the first three years of ownership? In fact, cars lose value the moment they’re driven off the dealer forecourt.
While there’s not much you can do to fully prevent depreciation as a car owner, however, there are a few ways you can maximise the resale value of your vehicle.
5 ways to minimise the effects of car depreciation
Pay Attention to the Mileage
One way to limit depreciation is to keep the mileage under the average miles per annum. The more miles you have on your odometer, the more likely it will be that it will depreciate in value.
Make it a part of your routine to keep your car clean which will prevent building up of grime and unpleasant odours inside the car. Keeping your car clean and tidy and in great condition will help limit depreciation.
Avoid Non-Standard Modifications
As exciting as an aftermarket body kit or a new set of aftermarket alloy wheels may sound, it can tend to narrow down the pool of potential buyers for your car in the future, making it harder to sell and most likely driving down its value.
Maintain Your Car
A full service history gives potential buyers peace of mind. Remember to keep all your car documents including service records and receipts. The recommendation is that drivers should service their car every 12 months or every 12,000 miles. However, you should check your owner’s handbook for the vehicle and follow the advice it gives on servicing. At ClickMechanic, we provide three levels of servicing – an interim, full or major service.
Research Before Selling
If you’re looking to get the best price for your car, considering doing a bit of research to see what’s the best time to sell your car. For example, convertibles tend to be in higher demand during the summer months.
BONUS TIP: If you’re planning to buy a used car soon the first step is to make sure you buy the right car. Keep in a mind a few factors such as the number of previous owners – the fewer, the better! Although older cars are cheaper, more often than not, a newer model will hold more value when it’s time to sell it off. It’s also important to do a Pre-Purchase Inspection by a professional to make sure you’re making the right investment. ClickMechanic can help with a Pre-Purchase Inspection, with three different levels of inspection to suit your needs.