Got a car sitting in the driveway that’s losing money each and every day? Sickened by the thought of what you could have done with all the money you’ve now lost? Then you’re going to be very interested in these five tips!
1. Avoid Excess Mileage
One of the best ways to limit a car’s depreciation is to avoid putting extra miles on it. Developing good habits such as walking to locations that are close enough or using public transit where possible will limit the mileage of a vehicle and thus lower its depreciation. Most of a car’s depreciation is within the amount of miles that it has run, which means the lower that a car owner can keep the mileage of their vehicle the more they will be able to get for it later on. Car pooling is also an effective way to reduce mileage on a car. Every method used to save on mileage will also save on gas.
2. Buy an Older Model
Even if an owner wants to buy a brand new car they can still buy an older model. Lots usually have older car models on the lot that are still brand new cars. An older model will be priced lower than a newer one which will reduce the amount of depreciation that the car undergoes. The most depreciation that a car undergoes is always during the first few years that it is owned. Negotiating the price down further will also bring the purchase price closer to the depreciated price.
3. Research the Brand
There are certain makes and models of cars that depreciate less than others and buying one of these cars can help significantly when trying to reduce the rate of depreciation. While these cars may have a higher upfront cost than other models of car it will pay off eventually when the car owner factors in the amount that another vehicle would have depreciated over time. A conscientious car owner should run through the numbers on multiple cars using a website like Classic Cars for Sale in order to see which car will save them the most money in the long run.
4. Take Care of Scheduled Maintenance
If a vehicle is taken care of properly it will suffer less problems down the line. Vehicles that are in good condition will depreciate less than vehicles that have issues. Scheduled maintenance on cars is usually relatively inexpensive and fast so there is no reason that an owner should not make sure that their car is always going through the best maintenance procedures. Most maintenance is as simple as getting tires rotated, getting the oil changed, and getting the brakes checked, and any qualified repair shop will be able to do all these items quickly.
5. Buy a Used Car
Above all, the best way to avoid depreciation is to simply buy a used car. Most cars depreciate the most in value simply by being driven off the lot, and buying a new car means that most of the depreciation that the car will experience has already been knocked off of its list price. There are many ways to safely buy used cars without having to worry about potential problems and repairs. Car buyers concerned about depreciation should strongly consider getting a used car from a reputable dealership.