The moment you drive a new car off of the forecourt it automatically loses approximately 10% of its value. Depreciation in the car market is rife and most new car buyers are expected to make a loss on their car every year for at least the first five years. With depreciation such a negative and predictable aspect of buying a new car, what can you do to avoid it?
Do your research
If you’re set on purchasing a new car there are a few things you can do to avoid depreciation in the first instances. The make of the car has a huge amount to do with how quickly it loses its value. With expensive vehicles often holding their value much better than cheaper cars, it makes sense to invest in a more expensive model, if you can afford it. The mileage on a car is another huge factor in determining the speed at which its value depreciates; cars with fewer miles on them tend to sell for more than those with a lot on the clock.
Take good care of your car
One of the best ways to avoid any extra and unnecessary depreciation is to take good care of your car. Having a full service history and the certificates of your MOTs available means that when the time does come to sell on your car, you can provide the buyer with a record of how well you’ve looked after it. Things like the smell of cigarette smoke or pets can be off putting to potential buyers so regularly cleaning your car out is highly recommended.
One way to get all the perks of a new car without the hefty price tag is to consider leasing a new car as an alternative. With so many different payment plans available, there are many ways you can drive a new car without having to outright buy one. Leasing means you can agree a down payment that you’re willing to pay and then from that affordable monthly payments to lease the car and hand it back at the end when you no longer need it or are looking for a different make or model.
Depreciation is unfortunately something unavoidable that comes with buying a new car and if you don’t want to look at other options such as leasing or finance and PCP, it’s something you’ll have to accept and do your best to reduce the effects of. The best way to do this is by looking after your vehicle and regularly having it serviced.