According to the AA, ‘The average new car will have a residual value of around 40% of its new price after three years (assuming 10,000 miles/year) or in other words, will have lost around 60% of its value at an average of 20% per year.’ While depreciation is inevitable, there are several things you can do to reduce the process and retain value.
1. Pay attention to mileage
Car lover’s don’t often need an excuse to take a leisurely drive about town. The problem is, the value of your car will decrease as the mileage goes up. While it’s impractical to avoid driving too much, you can seek to keep your mileage down. Firstly, ensure that you plan your routes carefully beforehand, getting lost is the easiest way to rack up unnecessary miles! Consider that 10,000 miles annually is the average, and aim for this figure or below.
2 . Choose your car wisely
Choosing your car wisely can help you to reduce the depreciation of your car. This is because some cars lose value at a faster rate for others. For instance, the Range Rover Evoque, the Tesla Model 3 and the Alpine 110 are all known to be slow depreciating cars. Conduct thorough research before you purchase a new vehicle, this can help you get better value in terms of depreciation.
3. Drive safely
Driving safely means you’ll minimise your chances of having an accident or causing damages to your car. Remember that all incidents and major repairs are recorded in the car’s history. Incidents and major repairs will mean that your car loses value. Of course, no matter how safely you drive, it’s difficult to anticipate the actions of other drivers. By taking a defensive driving course, you can learn how to do this and therefore become a safer driver overall.
4. Regular maintenance
It’s important to get regular maintenance checks to keep your car in great condition. Your service company can take care of all the necessary repairs from brake work to wheel alignment and engine tune-ups. Besides this, you should inspect your car daily for cosmetic damages that might affect the value. You should also visit Frame repair shops for your frame work. Auto frame repair and straightening is important so that the frame can offer protection in the event of a collision.
5. Ceramic coating
Ceramic coating is a new alternative to car wax; it’s basically a clear liquid polymer. When you apply ceramic coating to your vehicle, the substance will bond with the paint. Using ceramic coating will help you to protect your car from cosmetic damages. Whether it’s damage from the elements, bird droppings, or scratches, ceramic coating offers high-level protection to keep your vehicle in the best condition. When you apply ceramic coating to your car, it also means that it’s much easier to clean.
Perhaps you’re likely to sell your vehicle in the future? If so, these five tips will help you to see more of a return on your primary investment.