Whenever you buy a car, it’s inevitable that its value will decrease.
In fact, within the first 3 years of car ownership, the value can drop by as much as 60%. Some models do better than others, and the arrival of more electric cars is altering the market as well.
With the new plate coming in next month, here’s advice for readers hoping to understand how to retain the value of their vehicle for longer from Chris Adams, Group Operations Director at Brindley Group.
Pay attention to vehicle performance
Typically, a car that has lower running costs will hold its value better. When it comes to choosing your next vehicle, take into consideration factors like its fuel efficiency and whether it’s economical. Whether you’re buying a new or used car, consider costs like insurance and road tax which can play a role too, with more affordable rates helping to lessen the depreciation of the car.
Consider the price of the vehicle
Before buying your next car, think about your budget and how much you’re willing to spend. Typically depreciation is calculated as a percentage rate of the car’s value. So, the more expensive the car, the higher the margin when it comes to loss of value.
Maintain your vehicle effectively
The condition of your vehicle is another important factor. You should make sure you keep on top of MOTs and servicing, as well as keeping the records for any work that’s been done on your vehicle.
Keeping mileage as low as possible will also help to reduce the depreciation of your car, and consider maintaining the condition of the interior by not smoking and not allowing pets.
