Cutting Car Depreciation Costs

    Posted by Ben Davidson about 5 months ago

    Cars are one of the most valuable possessions we own. Most of us have to save or take out a finance agreement to buy one, which is fine because they are useful, lots of fun, and often necessary. However, it can be a bit of a bummer to find that the car you’ve just bought is already worth far less than it was just a minute ago.


    Did you know that the average new car will lost 25 percent of its value the second you drive it off the lot or that it could be worth as much as 40 percent less than you paid for it 12 months on? It’s a shocking fact that most car owners won’t be happy to hear, but all is not lost - there are some things you can do to cut the level at which your vehicle depreciates...


    Buy a Used Car


    It’s pretty obvious that if you buy a used car, you won’t see it depreciate as far as a new car. Used cars have already lost a lot of their resale value, which means that you can spend less on acquiring them and that they will hold their value far better, if you look after them than new cars. If you’re smart, you can find high-quality used cars for sale under $25,000, which have barely been driven, and you could make an absolute steal. It’s definitely the smart thing to do.


    Buy a Cheaper Car


    If you don’t want to buy a used car, buy a cheaper one. Sure, it’ll probably still depreciate at the same rate, but at least the actual dollar amount you’ll be losing will be lower, and that will mean less of your money will have been effectively “wasted.”


    Buy an Ex-Lease Car


    Buying an ex-lease car that is just one or two years old is one way to get the best of both worlds. You get to own a relatively new and shiny vehicle, without having to pay the depreciation costs because the first owner will have paid for those. It’s easier than you might think to pick up relatively new cars in this way and it could just be the smartest thing you’ll ever do.


    Take Good Care of Your Car


    You can’t avoid your car depreciating in value completely, but if you look after it, carrying out regular maintenance before bigger problems rear their head, you can hold on to more of the value than you would if your car was poorly maintained. Well looked after cars are always more attractive to buyers for obvious reasons, so use that to your advantage.


    Buy a Car You Love


    Finally, when you come to buy a new car, make a real effort to choose a vehicle that you love, and which will meet your needs now and in the future. That way, even if your vehicle does depreciate in value significantly, it won’t really affect you too much because you’ll love it and use it for longer and its value won’t be of much importance to you.


    Tags:

    Latest Articles

    See All
    • From Zero To Hundred (Dollars): Making Money With Your Vehicle
      From Zero To Hundred (Dollars): Making Money With ...

      February 17, 2020 - With rising costs in fuel, we can grow frustrated at having this chunk of steel in our driveway potentially wasting money. But instead, if you can start to consider using your car as a wise investment by harnessing its potential to make extra money i

    • 3 Tips for Planning Ahead for a Great Solo Road Trip
      3 Tips for Planning Ahead for a Great Solo Road Tr...

      February 15, 2020 - Road trips are some of the most fun, exciting, and adventurous ways of spending a chunk of free time that you could possibly hope for.

    • Why You Should Consider Pay-Per-Mile Insurance
      Why You Should Consider Pay-Per-Mile Insurance

      February 11, 2020 - In this way, drivers who do not drive very often, or who drive short distances, are considered to be low-risk. Of course, your insurance provider will also consider other influencing factors, such as your age, your driving history, and the car you dr

    • Top Load Versus Bottom Load: Which Auto Transport Option is Right for You?
      Top Load Versus Bottom Load: Which Auto Transport ...

      February 7, 2020 - The most important thing to think about, though, is that if you drive your car instead of shipping it you will be at a MUCH higher risk for these sorts of things damaging your vehicle.

    • Struggling To Afford A Vehicle?
      Struggling To Afford A Vehicle?

      February 7, 2020 - However, no matter what kind of a position you might be in, you should bear in mind that it is always actually perfectly possible to afford a vehicle without too much trouble, as long as you are aware of your options. In this article, we will take a

    • Cutting the Cost of Car Ownership in 2020
      Cutting the Cost of Car Ownership in 2020

      February 5, 2020 - Car ownership can be a costly business, but it doesn’t have to be. With these savvy money-saving tips, you can cut the cost of owning a car and still drive the vehicle of your dreams

    • Handy Hints For a Successful New York to Boston Trip
      Handy Hints For a Successful New York to Boston Tr...

      February 5, 2020 - A road trip from New York to Boston is definitely doable; you just need to get organized with your planning. Here are a handful of hints that might just help you during your big roadtrip.

    • DIY Car Repair on the Rise: How, Why and Where?
      DIY Car Repair on the Rise: How, Why and Where?

      February 3, 2020 - Car repairs can quickly exhaust your pocket. However, you can do a wide range of repairs yourself, regardless of your technical skills.

    • Defeating Your Nerves Before a Driving Test
      Defeating Your Nerves Before a Driving Test

      February 3, 2020 - Many of us spend weeks, not to mention our hard-earned money, learning to drive with a professional instructor, learning the rules of the road, how the car handles and practicing our skills.

    • Essential Car Checks Before a Big Trip
      Essential Car Checks Before a Big Trip

      January 27, 2020 - A long road trip helps you to see more of the world and gives you a chance to bond with your travel companions. Driving long distances can also improve your driving skills and knowledge of the road, as well as increasing your confidence.

    Share This!

    or