Car depreciation is a term you have probably heard but you might not know what it means. Here’s our guide so you have all the information…
Let’s kick off this post with a fun fact – most cars lose between 50 and 60 percent of their value in their first three years.
However, there are a lot of varying factors in this, such as the make and model, price and running costs.
Depreciation is the difference between what you pay for a car and the amount you get when you sell it or trade it in. The first year of ownership will always be where most of the money trickles out and then it starts to slow down.
However, there are things you can do to minimise depreciation:
- Keep your mileage down
- Keep your car in a good condition – and clean!
- Maintain your car with regular services and carry out work as necessary
- Check and prevent against failed MOTs
Buying a new car
If you are considering buying a new car, depreciation will be a big factor for you. Consider the value of your car and how long you plan on keeping it for.
Buying a used car
The advantage to buying a used car is that a lot of the depreciation will have happened already – if it is over three years old. You can do your research to find out what the market value could and would be, so you go in with all the knowledge you need.
Selling your car
If you are planning on selling your car, you can get a quote to see how your car would be valued. You can take a look at our blog about selling your car in Kent, so you can see what your options are and which way to go.