Depreciation is the fiscal value difference of a vehicle at the time you purchase and the time you sell it. Car depreciation is about 15% to 35% within a year of its purchase, and after three or more years, it reaches a minimum value of 50% or more. It’s common to consider mileage over the depreciation value. However, paying attention to both would be economically beneficial.
How Do You Avoid Car Depreciation?
Here’s how to avoid car depreciation to protect your valuable investment:
Buy a Car That Depreciates Slowly
If you’ve decided to buy a new car, make sure to do a little research on its predicted residual value. However, cars that depreciate slowly can be expensive compared to faster-depreciating cars. It is better to invest in a car with low running costs.
Consider the Car Mileage
Besides the car model, mileage plays a vital role in determining the value of car depreciation per year. Keep your mileage low, but not to the point where the vehicle runs into other problems later.
Take Care of Your Car
Your vehicle’s condition determines your car depreciation value. Shabby interiors, grazed alloy wheels, cigar, or pet odors inside the car may affect its condition that can impact its depreciation value.
- Stick to standard colors (grey, black, white, silver).
- Track your service checks and MOT certificates.
- Do not frequently modify your car.
- Buy a nearly-new used car to avoid fast depreciation.
- Sell at the right time of year (larger cars in winter and convertibles and sports cars in summer)
Avoid car depreciation by following the steps mentioned above. Make sure to insure your car to keep it safe and secure. For all your auto insurance needs, contact the experts at Gant Insurance Agency in McKinney, Texas. We look forward to helping you with all your car insurance needs today.