Car depreciation is inevitable no matter what car you buy unless it’s a classic, one-off, or produced in low numbers. But there are several ways you can stop your car value from losing its value faster.
So here are our 6 tips to beat car deprecation.
It’s all about the brand
Certain brands hold their value better than others. This depends from country to country, and in the UAE; Toyota, Nissan, and Honda retain their value better compared to other brands. Japanese cars tend to hold their resale value better followed by select German, Korean, and American brands followed by other European and Chinese manufacturers.
According to sources, your depreciation can be as low as 30-40% lower or as high as 50-60% just based on the brand over a three-year period.
Age isn’t just a number
Buying a new car isn’t always the best way to go. Sure it smells nice, and no one else has set foot inside, but new cars tend to lose value as soon as they roll out of the showroom, and in the first year, you can lose up to 25% of the value of the car.
Purchasing a car older than a year is better and we’d recommend you buy a lightly used car rather than a new one.
Classics are different. Not every car will become a future classic. Those that are revolutionary in some way, the first of its kind, one-off, exceptionally rare, absolutely terrible, or have a cult following, might end up appreciating or holding their value.
Don’t drive so much
Keeping mileage figures low can help slow down car depreciation as buyers look for used cars with lower mileage.
Instead of driving to the Cornershop, walk there. Not only is it healthier, but it also keeps your car mileage down. Consider carpooling to work if your colleagues live close by. Or ask yourself the question, do I really need to leave the house to grab a Karak?
Warranty and Service Packages
Warranty and service packages do expire after a few years or a certain amount of kilometres and having one with your car can slow down the vehicle’s depreciation.
Buyers are always concerned whether or not an issue may occur shortly after purchase, but having a service contract or warranty remaining slows down depreciation.
Extendable warranty is available from official dealers and certain companies, the same goes for service contracts. The latter is more common and is available from third-party companies.
Service History
Having a full-service history is a big plus as it gives buyers a deeper insight into your vehicle, how often it has been serviced, what parts have been replaced, accident history (if any), and where it has been maintained.
Partial service history can also slow down depreciation. By not keeping any records you increase your car’s deprecation significantly as the buyer has no clue about the vehicle’s past.
Always keep records even if it is a spark plug change or button replacement inside the cabin. If it is a receipt, save it as it proves you’ve changed something at some point.
As for servicing, always go for the official dealer or a reputable garage when taking it in for a service. When you eventually sell it, this gives the buyer peace of mind.
Keep it clean
Make sure the exterior is as clean as a whistle. Vehicles that have been damaged will depreciate in value rapidly. That little dent or paint chip can affect the vehicle’s price.
This goes for the interior as well. Cracked leather and torn fabric can cause the value of your car to drop. Missing dials, broken screens, and snapped indicator stalks can cause the value to drop too.
Fixing small issues can have a big impact on the price of your vehicle.
And that’s our list. Have you got any helpful tips we may have missed out on that you would like to share? Comment below.
Looking for a used car in Dubai? find over 17,000 cars for sale across the country on DubiCars.
Main image credit: Depaula Chevrolet
