Looking to help your new wheels hold their value as long as possible? Our car finance expert, Verity Hogan, shares her top tips for helping you slow down the rate of depreciation
What is car depreciation?
All cars – except for collectable classics – lose value over time. In fact, as soon as a brand-new car leaves the dealer’s forecourt, it starts losing value. Depreciation is the word used to describe this process.
But if depreciation is going to happen no matter what, is there any point in trying to minimise it?
Well, while depreciation is inevitable, you could still control how quickly it happens. It’s not an exact science, but there are steps you can take to help your pride and joy maintain as much of its value for as long as possible.
And the more value it holds, the more you’ll be able to get for it if you decide to sell or part-exchange it in the future.
Think trusted brands
No matter whether you’re buying a new watch, washing machine, or set of wheels, there are certain brands that scream quality.
You know the ones, the household names that everyone knows, the makes that are known to last forever, use great materials, and earn a nod of approval from your dad.
In the automotive world, there are a few brands that have a reputation so strong that it can help them maintain their value for longer. Think Volvo, Toyota, Lexus, and Mercedes – all manufacturers that are known for quality, reliability, and safety.
If you want to minimise depreciation, choosing a car from one of these brands can help.
Choose a neutral colour
When it comes to choosing the colour of your next car, the most valuable colours are also the most boring.
Let’s face it; safe, neutral shades never go out of style. While certain colours might be in trend for a few years (Racing Green has been in vogue for a while now), the classics always endure.
Choosing a model in black, blue, grey, or silver is a good bet if you want it to hold its value.
Bright pink, purple or yellow are more acquired tastes and might limit your buyers’ pool when you come to sell.
Miss out on modifications
One of the best things about owning a car outright (after your finance is paid off) is that you can do whatever you like with it. For some, that might mean making modifications.
If you’ve been dreaming of swapping out your radio for a state-of-the-art stereo system, adding a turbo exhaust, or adding a leopard print wrap, then who are we to stand in your way? Just keep in mind that you could be speeding up the car’s rate of depreciation.
Modifications are a lot like car colours, while some people might love them, they’re not for everyone. And if less people want to buy your car, its value will go down.
That being said, it’s worth keeping in mind that some modifications can boost your car’s value. These tend to be related to safety like reverse cameras, parking sensors, or an anti-lock braking system (ABS).
Prioritise TLC
A little TLC can go a long way. Take time to keep your car in good condition and you could boost its value simply by being a careful owner.
Clean it inside and out regularly to prevent any rust build-up or staining of the upholstery, get any minor repairs fixed quickly and by a professional mechanic, and make sure the essentials like your oil, screen wash, and coolant are all kept topped up.
If you have options when you park, try to choose spaces with plenty of room so you’re not at risk of scrapes or accidental bumps. Bonus points if you can keep your car off-road and in a secure garage overnight.
Keep your mileage low
While the rate of depreciation can be affected by a whole host of factors, mileage is one of the most impactful.
It’s simple maths; the more miles you drive, the less your car will be worth over time.
Of course, the reason you own a car is to drive it and sometimes, we can’t help but put a lot of miles on the clock. If you have a long commute to work or uni, live hundreds of miles away from your family, or just love going on epic cross-country roadtrips, your mileage can quickly add up.
But, if you can leave the car at home for short journeys and choose the train for your next long-distance trip, you could help your car retain its value for longer.
Don’t skip your services
Your car’s manual will let you know how often they recommend your wheels go in for a service, but most will say to book in for an interim service either every six months or 10,000 miles.
If you want your pride and joy to hold its value for as long as possible, don’t skimp on services. While it might cost you a few hundred pounds every year, it could be worth it not only to help your car maintain value but also for the peace of mind it brings.
