What is car depreciation?
Over time, your car will most likely lose value, otherwise known as depreciation. For example, if you purchased your car for £20,000 and sold it for £15,000 your car has depreciated by £5,000 or 25 percent.
Cars tend to depreciate the quickest during the first year or so of being on the road, which is good news if you're looking to buy a car that's a couple of years old. After that initial 12-month period, depreciation begins to slow as the car gets older.
Depreciation is often an overlooked cost when buying a new or used car, despite the fact that it can be one of the most expensive parts of car ownership.
Age and Mileage
These are generally the two most important factors when it comes to depreciation. Cars that have fewer miles are usually worth more. The same can be said about the number of owners; the fewer, the better.
Obviously, the better the condition of the car, the more it's going to be worth. Repairing any damage in good time and maintaining the car according to the manufacturer's recommendations will increase value.
MOT & Warranty
A car that has multiple months of MOT remaining is more appealing than a like-for-like model that hasn't. Those with any remaining warranty are also popular as it gives buyers peace of mind should anything go wrong.
How to minimise the effect of depreciation
Depreciation is inevitable with the majority of cars you see on the road today. Whilst depreciation can't be avoided, there are steps you can take to maximise the value of your car.
1. Keep your car in good condition
The most effective way of reducing the effect of depreciation is by looking after your car. Cars that are kept in top condition are more appealing to potential buyers.
2. Proper car maintenance
Your car's manufacturer's recommendations are there for a reason, as they help to keep the vehicle and its components in working order. Cutting corners can reduce your car's value.
3. Avoid modifications
Whilst modifications can be a nice touch, they're not to all tastes. They can also increase the chance of issues. If it's maximum resale value you're after, it's best to keep it stock.
The most convenient way to sell your car
Selling your car couldn't be easier when using our online car valuation tool. It's designed to be straightforward and quick to use, allowing you to receive your estimate within minutes. We also guarantee to give you the best price for your car, should you decide to sell it to us.
If you're happy with the estimate provided, simply arrange an appointment with your nearest Sell Your Car location to get the valuation confirmed and your car sold.