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For those that don’t know, car depreciation refers to how much your car drops in value from the moment you buy it. Generally, all cars will be worth less than when you bought them, and there are a few reasons for this. The rate at which a car depreciates isn’t set in stone – two people can have the exact same car, yet one might be worth way less than the other in a few years.
Clearly, after spending a lot of money on a car, you want it to retain as much of its original value as possible. While you’re unlikely to sell it for a profit, you can try to regain lots of money from the sale. Here are some simple tactics to do just that:
Take good care of your car
Keep up with all the necessary maintenance tasks to keep your car in the best condition possible. This does wonders for its value, and one of the main reasons some cars drop in value is because they’re poorly looked after. Similarly, clean your car regularly and it will be worth a lot more when you go to sell it.
Keep the mileage low
This might seem like a weird idea, but consider using your car less. If you can walk somewhere, walk. Use your car only when you have to, keeping the mileage as low as can be. People pay more money for cars without many miles on the clock as it shows the vehicle isn’t heavily used. Of course, this might be out of your hands if you simply can’t avoid using your car multiple times per day. Still, focus on the other ideas and you can prevent depreciation.
Buy the right vehicle
Choosing the right car is also very important to curb depreciation. If you buy a car that’s very popular and in-demand, the chances are it won’t drop dramatically, as people still want it in a few years. Similarly, as Marc Spizzirri notes in a blog post on antique cars, many classic cars retain their value as the production is low. What this means is the car is no longer produced, so it becomes rare, keeping the value high. So, if you actually want to buy a car that might generate a profit, think about driving around in a classic car!
Avoid modifications
Try to avoid modifying your car if you don’t want its value to depreciate. This is a lot like adding a pool to your back garden – it seems like you’re improving things, but it can reduce the value of your asset. Modifications only appeal to a very niche audience, with most drivers preferring to keep their car in its natural state. If yours has too many additions or mods, nobody will want to buy it. In turn, you lower the asking price, selling the vehicle for less.
Hopefully, this has given you some clear ideas on what it takes to avoid car depreciation. Remember, it’s very rare to buy a car and sell it for a profit after years of use. But, you can do everything in your power to maintain as much of the car’s value as possible!
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