Cars are considered an asset that are prone to depreciation, no matter if it’s a new or an old model. The extent of depreciation varies from vehicle to vehicle and even from one model to another of the same brand. According to statistics, the depreciation of a new car in faster compared to a car that has been used for years.
There are several factors that come into play when it comes to determining the depreciation of a vehicle. It is important to note that depreciation starts right after it leaves the showroom and drives on the road for the first time. The initial blow is significantly more but as time passes, the extent of depreciation of the vehicle decreases.
Depreciation may be a term that might deter you in buying a car, whether a used or a new one. Nevertheless, there are several ways to slow down the process of depreciate after the initial maximum depreciation has occurred. In order to achieve that you need to keep the car in mint condition through regular checkup and maintenance. Keeping a new car in a good condition may be easy but as the years go by, it may add to the difficulty in maintaining it like it used to be before.
There are several such car owners who don’t give much attention to their cars maintenance but rather push it to its limits. This may further damage the components of the vehicle and may become irreplaceable. Therefore, it’s important that car owners regard for their vehicles carefully by being vigilant about its maintenance. Well maintained car can always beneficial to the owner in the end as it enhances its resale value as a used car.
Depreciation – How it Works?
According to various studies, a brand new car is susceptible to deprecation up to 60% of total in its first five years of usage. Once a car has gone through its maximum depreciation in the first five years, the next phase of its depreciation entirely depends on its maintenance.
Vehicles that are well-maintained usually are expected to have a good resale value, even when they are older than five years. Cars that are ill-maintained, dirty from inside and out, as well as their components are rusting away, usually have a measly resale price. As a result, it’s advisable that you keep the car both mechanically and physically fit as it directly links to a car’s depreciation over the years.
While talking about the factors that affect the value of a car, supply and demand of the car in question plays a vital role in determining the resale value. If the car model is in demand in the market, while it’s relatively rear then its value is going to be high. The car model value drops when its demand is low and the supply is high.
The value of the older car models tend to drop the moment there is a latest version or an upgrade that is announced, no matter how well-maintained the older car model is. Nevertheless, this phenomenon is not always true as cars that come under the category of exotic cars, supercars and high-performance models tend to maintain their value even when there are newer versions of them out.
Tips to help Delay the Car Depreciation Process and Better Resale Price
Despite its inevitability, there are various ways of slowing down the depreciation process of a used car, after it has served its first five years of depreciation. In order to do that, it is essential that you maintain the car regularly and according to the car owner’s manual instructions. These instructions are different for every car thus vital that you follow them by the book.
Make sure that you never delay a single service checkup and keep a record of all the service checkups that you have gotten done. This is important as it determines the value of the car as well as important documents to show to the buyer. These are also an evidence that you can present to the buyer that you maintain your car properly thus should agree to the asking price against the car upon resale.
Maintaining a car is important as it retains its shape close to its original condition as well as gives a consistent performance in different driving conditions. It also helps to avoid any potential car breakdown like radiator heat up or tyre blowout.
Below are some of the important tips car owners should know in order to maintain their car effectively. These, as a result, will also help delay the depreciation process after it has received the maximum initial depreciation in the first five years:
- Ideal times for taking your car for regular maintenance is monthly, quarterly, biannually or yearly basis. This is best suggested by the car owner’s manual and should be followed accordingly.
- Keep the car in clean and neat condition by getting it washed from a service station when necessary.
- It’s important to keep the original car paint intact if you want the car to retain value close to its original value. You can get the paint looking refreshed by applying a good quality wax on the exterior after every six months. This will keep the original paint intact.
- The interior of the car should also be cleaned and looking fresh before putting it up for sale. Try keeping the seats in their original shape and covering.
- Customization and modification of the car caused the value of the car to decline significantly. No matter how expensive those body styling and performance enhancement are, it will not help in increasing the value of the car; not more than what you would expect.
- It’s advisable that you park your car in the shade whenever you are outside. The hot weather conditions and harsh sunlight of the UAE region may cause the dashboard to crack or damage the leather of the seats.
- Always keep a record of all the service checkups of your car as it may help in determining the value of the used car for resale purposes.
Maintenance of the Car Allows Consistency in its Performance
Cars are like human body; as long as you take care of the basic needs like food, sleep as well as regular doctor’s checkup and proper medicines on time, the bodily functions will work fine, even for a longer period of time. Similarly with cars, as long as it is well-maintained with proper cleaning and regular service checkup it is surely going to reliably function for a longer period of time and give consistent performance. This is particularly important for those cars that have passed the first few years of depreciation, as they are in more need of being taken care of.
If you are planning to get a new car in near future then do not forget to sell your old car. For a hassle free selling process try SellYourCar24.com’s free valuation services.