Whether you purchase a new or used car, it will depreciate simply because you take possession. There are precautions you can take to minimize the depreciation of your vehicle, to protect the resale value for when you sell or trade it in. Trading in your car in is an excellent way to minimize the out of pocket down payment when you purchase your next car. Some vehicle models simply hold their value better than others. The internet is a great resource for learning which manufacturers and models historically retain their values best. Keeping this factor in consideration before you purchase a car will help you make an informed decision that will benefit you now and in the future.
As tempting as it may be, do not ignore the dealer guidelines for the break-in period of a new car. It is typically recommended not to exceed 55 miles per hour for the first thousand miles of your car’s life. It is also suggested not to idle for long periods of time, or haul heavy loads. If the vehicle you are purchasing is used and the break-in period is long past, it is still crucial to treat the car in a manner that will maximize its resale value.Her response behindthewheel.com.au/3-factors-that-may-affect-your-cars-resale-value.
Your driving style and maintenance habits will also affect the value of your car. If you accelerate and brake abruptly, the wear on your car will be worse than if you drive conservatively. For the same reason, maintain the car like it is your job. Regular maintenance impacts your car’s longevity, and will be an important consideration to the person determining its value in the future.
Cleanliness cannot be overlooked either. Eating and smoking in your car are avoidable habits that will drive your resale value down. Eating in your car can result in permanent stains in the floors and seats, which will compromise the resale or trade-in value you would otherwise receive. Smoking cigarettes in your car leaves behind an odor that lingers and is difficult or impossible to eradicate.
Even though you may be inclined to drop thousands of dollars on after-market accessories for your vehicle, it is an investment that will not raise the car’s resale value. In fact, modifications will probably lower the value. The common consumer is not in the market for an orange vehicle with yellow flames and a larger than life, non-functional spoiler, so you are better off investing your money in regular maintenance and cleaning.
It is said that a car is not a good long-term investment. While vehicle depreciation is inevitable, you do have control over its extent and the way you invest your money. By choosing a dealer with in-house financing who reports to the credit bureau, you can turn the purchase into an investment in your financial future by improving your credit at the same time.