8 Smart Tips That Enable You To Minimize Your Car Devaluation

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Most things in life devalue over time and cars are no different. A car reduces in value the moment you drive it off the dealer’s forecourt. Car devaluation or depreciation is the difference between the amount of money you bought your car for and its current worth. It is the cost of car ownership which has a huge impact on your finances, even more than your fuel and maintenance costs.

According to an annual study by AAA, the average cost to own and operate a new car is USD 8,469 a year. Depreciation accounts for almost 40% of the cost of owning a vehicle that is USD 3,000 a year. By the time your car is a year old, it has lost nearly one-third of its value. It is a huge hit on your finances. The good news is that there are several tips you can follow to maintain the value of your vehicle and minimize the devaluation. This article compiles some of those tips and shows you how to take advantage of them.

Choose the make and mo delwisely:

If reducing devaluation is your top priority, you should choose a car of popular make and model. This will let the dealer know that there won’t be any trouble in selling your car online or to another buyer. So, they will gladly offer you a better value when you trade it in. Therefore, cars from the leading brands often result in getting high resale values than those from an up-and-coming auto manufacturer or a new brand. Because very few people would risk their money by purchasing a car with no quality track record.

A vehicle with good make and model means it has good fuel economy, lowmaintenance costs, and a reputation for reliability. All the popular brands,who boast their track record for quality, regularly top the reliability surveysand keep a lower depreciation rate.

Choose colours wisely:

The color of your car has a huge impact on how much its value will depreciate over the years. Loud and unusual colors may reflect your personality, but they will probably give you a hard time when selling your car. White, black, silver and other popular colors are easy to sell and known for maintaining their value over a long period. Most of the buyers will factor in the color when they evaluate your car. It is wise to opt for a popular colour which will make it easier to sell; hence, the best way to minimize devaluation.

Maintain your car well:

One of the most important ways to reduce car depreciation is to stay on top in terms of maintenance. Buyers want a vehicle that has been regularly looked after and not the one that has been neglected over the years. Keep the service history up to date, and make sure each service is entered in the logbook. This could be crucial in fetching a better resale value for the vehicle.

Moreover, repair any scratches and dents because even minor damages can make any vehicle look like a questionable purchase. You can look after your car by:

  • Protecting the car’s condition by regularly cleaning it
  • Preserving the car mechanically by keeping its fluid topped up
  • Protecting the upholstery using seat covers
  • Repairing dents and scratches, if any
  • Protecting the paintwork (hence the chance of rust or corrosion) by parking the car in secure places

Proper maintenance will help you combat devaluation and impress potential buyers that the car is carefully looked after.

Keep lower mileage:

The more you drive a vehicle, the more chance is there for wear and tear of the engine and other mechanical parts. By keeping the mileage as low as possible, you can significantly abate the effects of devaluation. This may not always be possible in certain circumstances. However, to save money in the long run, you must try to minimize your mileage wherever possible.

Keep your car clean:

Do not expect to fetch a high price for a car that is unclean and home to unpleasant odors. Keeping your car clean, from regular vacuuming to the use of odor removers, is essential. Frequent visits to the car wash can pay off as can parking in a protected area. The more your car looks clean, the more it creates an impression of a well-maintained vehicle which can get you a high resale value.

Avoid modifications:

Modifications and personalization can make the car just right for you, but they can fend off many potential buyers. To maximize the potential resale value, it isprudent to keep the car in the condition in which you bought it. If you alreadyhave made a few modifications, it is better to leave them. Adding and removing elements from your car can cause irreversible damage.

Get the best deal when you buy:

The best way to minimize depreciation is to get the finest possible deal when you buy your new car in the first place. Most of the car buyers do not think of depreciation when they are purchasing a car. Hence, they do not drive a hard bargain or haggle on the price. If you save thousands of dollars on your new car, the depreciation rate will be much bearable and much easier to live with in the coming years.

Sell at the right time:

You should sell your vehicle at the right time to maximize its value. Some vehicles have more appeal in a particular season, so they should be presented for sale only in that season. For instance, a sports car or a convertible are more likely to get sold in summer than in winter. Carefully monitoring the market can help you reduce car devaluation to a great extent.

Conclusion:

Depreciation is an unavoidable fact of car ownership. Whether you like it or not, your car is going to reduce in value within the first three years of its use. However, the effects of devaluation can be minimized using the tips mentioned above.

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