880 Walkers Line, Burlington, ON, L7N 2G2
My Garage

How Reduce New Car Value Depreciation In Puslinch

How Reduce New Car Value Depreciation In Puslinch

If you’re paying out on a Puslinch auto loan every month, you want that investment to provide as much of a return as possible. That will mean getting the most out of the car while you have it but also when you come to sell it or trade it in. So, what can you do to reduce new car value depreciation?

 

Our Puslinch auto loan team took up the challenge and this is what they came up with.

 

What is car value depreciation?

 

First, let’s cover what depreciation is and what causes it. Car value depreciation describes how, why and how much your car loses value over time.

 

New cars experience a burst of depreciation as soon as you drive it off the lot, anything between 20-35% depending on the car. After that, the car’s value drops over time.

 

There is no fixed amount of depreciation. Much will depend on the make and model, the colour, trim, engine and condition.

 

How to Reduce New Car Value Depreciation

 

You cannot stop depreciation. It’s a fact of life. The auto industry moves at such a speed that designs, engines, features and technology all become outdated quickly. All these things, plus the mileage you add to the car will all contribute to depreciation.

 

You can minimize it though. Try these tricks to retain your car’s value for when you trade it in for your next auto loan.

 

Choose your make and model carefully

 

Some makes and models of car depreciate faster than others. Typically, manufacturers with a reputation for quality and reliability will depreciate slower than others.

 

Perform as much research as you can around manufacturers, models, trim levels, technology and their effects on depreciation. Concentrate on those vehicles that fit your criteria and learn as much as you can about how much and how fast they lose value.

 

Choose a common colour

 

Some of the more outlandish car colours can look amazing but they are also niche. You would be surprised at how much influence the colour of a car has on its value and that’s something to bear in mind.

 

White and silver cars are firm favourites while brighter colours may have less of a market.

 

Service history

 

The vehicle’s service history also has an influence over depreciation. Keep up with servicing and you’ll get a better trade in price than if you serviced it yourself.

 

This shows a potential buyer that the car has been looked after and maintained correctly. Two things that reassure buyers, which is worth money.

 

Vehicle mileage

 

High mileage vehicles will depreciate faster than low mileage variants. This is because the higher the mileage, the higher the maintenance overhead. Soft parts, wear and tear and more frequent servicing will all be a concern for a buyer of a high mileage car, which means a lower future value.

 

Lower mileage cars don’t have that, so will be worth more.

 

Vehicle condition

 

The closer to new condition you can keep your car, the more it will be worth. This will be partly down to less work for the dealer to do when reconditioning the car for resale and because it will be more desirable for the future owner.

 

Wear and tear is inevitable but if you can stay on top of minor repairs and keep the car in as good a condition as possible, you’ll get more money for it.

 

If you need help or advice on anything to do with auto loans in Puslinch, contact Car Nation Canada today, we can help!

 

Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles!

Categories: News

Tags: ,