Car value and price depreciation: What is it and will it affect me?
Purchasing a new car can be exciting and rewarding as you start driving your shiny new motor. But the price of your car will decrease from the second you drive it away from a showroom. This is called price depreciation. It’s a hard truth to face and it means that you’ll more than likely get less than you thought when you decide to sell your car on. However, there are a few things you can do while a car is in your ownership to minimalise the depreciation of your vehicle and help you get the best possible price for it.
Your car’s price depreciation is the difference in the amount of money you buy your car for and the amount you sell it on for. On average, cars lose about 50% of their original value within the first three years of ownership. The things that affect the price are the make, model, mileage and age of the vehicle. Yet, all hope is not lost as there are three main things you can do to improve the price your car will be worth. This includes keeping it in good condition, keeping a full service history and making sure you find the right buyer for your car at the end of it all.
Keeping a record of your car service history
If you’re the first owner of your car then you need to start a full service history for your car from the second you buy it. This means, every time you get a service, whether it’s a full, interim or major car service, your garage needs to stamp your service book and write what they’ve done.
Why is this important?
Well, cars without a full service history can decrease in price by up to 20% when they get sold on. By simply keeping up to date with this you can save a big chunk of money in the long run. One thing you should do is get your car serviced every year or in line with the manufacturer’s guidelines which can be checked in your car’s service book. When the service on your car is complete, always keep a record of it – you can the mechanic to stamp your service book as proof. You can also keep a copy of the invoice, that way you can see what work has been done – if you don’t do this for every service and repair on your car your service history will only be ‘partial’ which means you could lose money.
Keeping up with the upkeep of your car
There are also things you can do to keep your car in good condition which makes the car more attractive to potential buyers. You should clean the car regularly both inside and out, you know the old saying ‘first impressions count’? Well, it’s definitely true in this case, if your car looks dirty it will give potential buyers the impression that the car hasn’t been looked after properly. When cleaning the outside of your car it’s important to clean dirt off your car as soon as it appears, particularly with tree sap! If it’s left for too long it could damage the paintwork on the car. Expensive paintwork won’t help when you’re trying to keep your car’s value, so taking good care of it in the meantime will definitely help.
Choosing the right buyer for you
Finding the right buyer for your car is all about persistence and timing. There will always be people in the market who want to purchase a car and they’re always looking in certain places. It’s definitely always worth putting adverts in your car window with the mileage, price and contact information people will need (you never know if someone in your neighbourhood needs a new car). You can also advertise on websites and social media. People tend to shop around, so, be patient and the right person will come along and take your vehicle off your hands… for the right price!
Regularly looking after your car, like anything, will ensure that it lasts longer. Regular interim or full car servicing and upkeep of certain components like your car’s air conditioning, exhaust system and power steering will help to keep your car’s value as well as save you money in the long run on major repairs and replacement parts. With Triangle Car’s we always help our customers with their car maintenance, if you need an MOT, service, repairs or advice on your vehicle maintenance, just come pop by and see us in Havant today!