When it comes to vehicle depreciation, the value of your car from the time you buy it to the time you sell it, there are many things you can do to retain your car’s value. Besides your home, the cars you own are some of the most costly purchases you’ll make in your lifetime so it makes a lot of sense to protect this investment. While some factors like the state of the economy and market conditions are beyond your control, here are some things you can do to ensure the best resale value possible for your four-wheel investment.
Guard against Steep Car Value Depreciation with Timely Auto Repair and Maintenance
It’s no secret that the better you take care of your car, the greater it will retain its value. Regular oil changes for your BMW, Mercedes Benz, Volkswagen, Lexus or Toyota will make a huge difference down the line when you go to resell it. Prospective buyers are more interested in vehicles with an excellent auto repair and maintenance record and they are willing to pay for it.
Furthermore, people are less inclined to purchase a used car that will need a major auto repair straight out the gate. Regular mileage interval auto repairs and oil changes from your local auto repair shop are a good way to fix small problems before they get worse. Not only will this save you some cash at the time of the auto repair but it will mean you’ll get more for your car when you try to sell it.
Buy Used BMWs and Mercedes Cars and Save Twice
Though it might puzzle a lot of people, the truth is that your vehicle will lose the most value in the first year you own it. How can that be when that’s the year the car is new and running in its best possible condition? Well consider the markup price when you purchased it and overall market conditions and economic factors such as supply and demand. This is true for all cars but particularly true for luxury vehicles such as German automakers BMWs, Mercedes, and Audi.
Buying a BMW used that’s two or three years old will save you as much as 20 -30 percent at the start and will retain its value better or as well (assuming regular BMW auto repair and maintenance) as a new vehicle. The downside to this is that people have figured this out in recent years so more people are aiming to buy BMWs used. For this reason, these luxury makes and models don’t retain their value as much as they used to.
Brand Name Matters So Consider Make and Model When Buying Your Vehicle
And this takes us to our next consideration with regard to car value depreciation and that is brand. Some brands will hold their value more than others. BMW and Mercedes used to be top spot for this but as market condition and buying trends have shifted, they have fallen from the top spots they held for years. Japanese automaker Lexus has taken the top spot for the luxury automobile category five years in a row though Porsche somewhat unexpectedly did beat it out for the 2018 slot. Toyota was the recipient of the Best Resale Value Awards with several of its vehicles ranking top shelf for resale value.
How Much You Drive Affects Resale Value
If you are a road warrior for your job or a weekend road warrior exploring all there is to see and do in southern California, your vehicle may pay the price in terms of resale value. If your vehicle has more miles on it than normal wear and tear, it will lose its resale value more quickly. (On average a car drives 10,000 to 15,000 miles per year.) If you regularly drive more than that, your vehicle may be classified as high mileage and thus lose some of its resale value.
Looks Aren’t Everything But They Mean a Lot in Resale Value
We are all taught not to judge a book by its cover but this applies less to vehicle depreciation value than you might think. A mechanically sound vehicle with minor dents, faded paint and a grimy, stinky interior might not sell as well as a car in need of minor auto repair that looks sharp. Little things can add up to a lot in terms of vehicle depreciation value. Before you put your vehicle on the market, invest in a thorough cleaning on the inside and out including a nice wax coating to put it over the top.
So if you are looking to buy a new or used vehicle, consider these factors that will affect your vehicle depreciation and resale value.
