When you buy a new vehicle that has been made in that very year, the value of the vehicle is at its highest. This is because the model is the latest, the vehicle isn’t used and it was just bought. However, as time goes by, the value of your car will depreciate. There are many reasons for this, the mileage you get on your car, if you have an accident or if a new model comes in. The value of your car in this way is similar to the value of money, it depreciates fast.
In this article, we will be discussing the way you can take into account the depreciation of your vehicle and how you can minimize the value of depreciation for your vehicle. If you want a much easier and quicker way, then head onto depreciation calculator at Capital Claims, which is simple and user friendly.
What is depreciation?
The first question that arises in every vehicle owner’s mind is what exactly is depreciation. It is the difference between a car’s values when you buy it and when you sell the car. The value of your car can depreciate due to many reasons. Some of them have been listed below.
As the years go by, the value of your car will depreciate. This is because there are newer models in the market or a more updated version of this specific car or its competitors.
When you have an accident and need to get the car repaired, it loses its value greatly. This is because there has been some external damage even though it has been repaired. So if you put on a new coat of paint that will mean you lost a lot of value in your car.
The more you drive your car, the more miles are added up, causing your car’s value to decrease. This is because the tires have been used, the car has been run and it is near its end than a new car.
How much does it depreciate?
The value of a car depreciates around 15-35 percent within the first of the vehicle. It depends on the type of vehicle, how commonly found it is. For example, a Ferrari will depreciate more than a Honda civic. While within 3 years of having that car, the value depreciates by 50 percent.
How to minimize depreciation?
There are a few tips you can follow to decrease depreciation on your car if you plan on selling it shortly.
- Keeping the mileage low
- Looking after your car and preventing damages or accidents
- Do not do any modification like changing lights, adding paint or more
- Stick to popular colors as people prefer to buy those
- Do your research
- Consider leasing, this will help you not worry about depreciation as the car will not be yours rather it will be leased. Or maybe even car subscription in Australia.
- Maintain your car exceptionally well.