Did you know that cars lose a considerable proportion of its value the moment it has been driven off the showroom? Depreciation is the highest cost associated with car ownership. It indicates the true figure of owning and operating a car on an annual basis, in addition to the costs of petrol and maintenance. During the first few years of ownership, much of the car’s value is lost with less depreciation occurring later in its life.
To avoid a massive depreciation hit, car buyers prefer purchasing certified pre-owned or used cars since a much lower-priced car will depreciate more slowly as it ages, and these cars are relatively cheaper to insure than new ones too! Regardless of whether you decide to own a new, certified pre-owned or used car, these are a few tips to ensure it is a financially sound investment.
Be Smart About Your Car Of Preference
First and foremost, we do encourage car buyers to purchase a car based on your lifestyle, preference and needs. After all, cars are meant to be driven and enjoyed, instead of sitting idle in a car park or garage for safekeeping!
However, car buyers should be rational to prevent making any impulse decisions. Choosing a niche car with a limited pool of potential buyers means you might face difficulties reselling it or getting top dollar on the trade-in. Similarly, a car that has been discontinued by the time you decide to let it go might not meet your desired selling price.
Research The Resale Value Of A Make And Model
Whereas, if you are purchasing a car with the intention of reselling it in the near future, we would advise doing an ample amount of research to estimate how much the make and model of your car will be worth. At UCARS, we provide a free and instant valuation on your car to eliminate the time-consuming process of manually acquiring car valuation quotes from different dealerships. Using the latest technologies, you can find out how much your car is worth immediately with our latest AI Valuation tool – no waiting needed!
Apart from the make and model, the mileage of your car matters too. A car that has a higher mileage will fetch a lower value as compared to the same model with below-average miles on the clock. Running costs will also affect car depreciation because, obviously, dealerships prefer cars that are economical to run.
(Related Story: At What Mileage Does A Car Lose Value)
Conduct Proper Maintenance And Servicing Of Your Car
Refer to your car’s manual and follow the maintenance schedule as closely as possible to keep its service costs down. Keep a detailed log of the maintenance performed, that includes a complete documentation of its service history with invoices, receipts and modifications that were done, as it helps maximise resale value too.
(Related Story: A Guide To Choosing The Right Car Workshop In Singapore)