How to Avoid Car Depreciation

On purchasing a new car, you may find that the value depreciates by 20 per cent, or more, as soon as the purchase is complete.

However, there are things you can do to help minimise how much your car depreciates. Here are some tips:

1) Pick a model that loses less of its value after three years – an Audi, for example, loses much less value than other models.

2) Consider how your usage will impact on the car – if you plan to clock up a lot of miles, buying a more expensive car with a slower depreciation value may be a good idea.

3) Factors such as a high road tax cost and inefficient fuel economy can also cause your car to depreciate – consider this before purchasing a new car.

4) Ensure that you maintain your car and have it serviced regularly. Keep a record of each service, in order to maintain a full service history.

5) During the manufacturer’s warranty, use the main dealer for the service, as this will add value.

6) Keep the car in as good a condition as possible. If there is damage to the bodywork, get it fixed quickly, to avoid rusting.

7) Get the car cleaned regularly, to avoid dirt becoming ingrained and leaving marks.

To sum up, while there is no way to stop your car from depreciating in value somewhat, selecting the right model of car, getting it serviced regularly, and looking after it are key factors in preventing greater depreciation than necessary.

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