The cost of buying a car is on the rise. The average price of a brand new standard vehicle is $42,380 in America, a price that increased by 8.8% from 2020 to 2021. Due to the current inflation rate struggles, it’s almost unavoidable that the cost of new cars will continue to rise. The price of used cars isn’t much better – they’re selling for an average price of $28,205, up 28% from 2021. Some things will impact the value of a car when it comes to selling it. From mileage to damage, we’re going to explore how you can hold the value of your motor.
Mileage is one of the biggest killers of value. When a brand new car is driven away from the showroom, the price begins to drop – it’s no longer a new car, but rather a nearly new one, and a nearly new one doesn’t hold as much value. Research shows that a brand new motor loses 10% of its value. After that, it continues to lose roughly 20% of its value per 20,000 miles driven. Experts estimate that the average brand new motor will lose up to 60% of its original value within the first three years.
Understandably, however, it’s tricky to restrict the miles you’re doing in your car, but you can try to make a conscious decision about the trips you’re taking. For example, if you live a 10 minutes stroll from the shop, consider walking instead of driving. Or, if you spend an hour in rush hour traffic on the highway during the morning commute but a bus will get you there in 15 minutes, consider swapping your transport for work.
Damage To The Vehicle
The value of a car after an accident is likely to depreciate. Depending on how bad the accident was and how significant the damage is, a motor may be damaged to the point where the value depreciates permanently. Sometimes, a car will be involved in a major road traffic accident which utterly destroys it. In this instance, full coverage car insurance policies do, more often than not, replace the car or payout for the actual cash value. It’s wise to consider that the actual cash value of a motor you bought will be less than the initial price because of depreciation. That relates to irreversible damage to a vehicle.
More often than not, it’s easy enough to rectify the damage to a vehicle after an accident, and the value of the motor restores. The worth will only not be restored if the damage remains when you try to sell the car. For example, if you’re involved in a minor collision that results in small dents or scratches, and you don’t rectify them before putting the motor on the market, you’ll get less for your car.
People want to know that you’ve been looking after the car they’re going to buy off you, and one of the ways they can find out is through maintenance records. Whether selling a motor privately or through a dealership, buyers generally will be interested in the maintenance work you’ve done, how often you’ve had it done, and why you’ve had it done. Maintenance includes oil changes, new brakes, tires, and anything that falls under the general looking after of a motor.
Some brand new vehicles are sold with a warranty that includes yearly servicing – yearly services are essential for the correct maintenance of a car – and used car owners can easily book in at a mechanic to complete the work. Poor maintenance also relates to how you care for the motor. The maintenance of the interior and exterior are just as essential to maintaining value as the inner workings are.
Age is something we can’t escape, but it will naturally depreciate the value of a motor. Experts think cars will depreciate 10-15% per year due to age. That’s why other factors, such as how you maintain the vehicle, are essential for keeping as much value in a car as possible.
Certain car modifications can damage the value of a car. Petrol heads, in particular, love to add modifications to motors that include engine, exhaust, and interior changes. Sometimes, this can work in favor of the vehicle owner. For example, a petrol head making engine and exhaust modifications can make the car more appealing to fellow petrol heads who see the modifications as an increase in value.
Typically, however, it’s wise to keep modifications to a minimum. Not only can it make the car tricky to sell, but it can also make it more tricky and expensive to insure.
Cars are a part of life that most of us can’t live without anymore. They might be getting more expensive to buy, but we rely so heavily on them that many of us will pay what it takes to keep a car on the road. Maintaining the value of a car will potentially make your next car easier to buy.