Very few car buyers purchase a car with the intention of keeping it longer than four or five years. Approximately 75% of cars sold in the UK are bought on finance with a large number of these deals running out three years later. Depreciation comes into play when people are trading in or selling their car. Depreciation is the difference between the amount of money you bought your car for and what it is worth now. There are many ways to minimise the depreciation of your car.
If reducing depreciation is one of your top priorities, choosing a brand of car that is known for quality is a great start. Highly desirable cars are also a good option as they hold their value better than other cars. BMW and Mini both fall into a highly desirable category and tend to sell on for a higher price than other cars of similar age and with a similar RRP. Cars sold with warranties are also highly desirable, meaning a higher price when selling.
When buying a car, it’s always good practice to think long term. The AA undertook research which revealed that it usually costs less in the long run to purchase a more expensive car than a cheaper one. The main reason for this being lower rates of depreciation in higher value cars.
Buying a car in a popular colour also helps it hold its value. Bright, loud colours may suit a person’s character, however, are much harder to sell on in the future.
All the tips in this article will help to reduce car depreciation in some way, but the most important tip would be to maintain your car well. A few factors come under maintaining:
- Regular maintenance & repairs – to get the highest possible resale value, keep your service history up to date and repair any damage as soon as possible to ensure it doesn’t get worse.
- Mileage – this tip only comes into play if you do not have to use your car all the time. Effectively, the lower your mileage, the higher the value when you come to sell.
- Modifications – avoid modifications associated with boy racers, these types of additions reduce the number of potential buyers of your car.
- Sell at the right time – do your research before attempting to sell, if the manufacturer has just released a new model of your car, there may not be as much interest. Obvious things such as selling a convertible in the height of winter should also be avoided.
- Smoking & pets – a car that has been smoked in regularly will leave a lingering smell and damage to the air system, this is extremely hard to get rid of and could cost you hundreds of pounds to get rid of and put off potential buyers
Here at Allied Autocare, we offer a variety of services for your car, from your regular car MOT to large scale body repairs and mobile servicing at your chosen location. If you would like to know more, please get in touch using our contact us form or call the number at the top of the page.