What You Can Do to Keep Your Car Depreciation to a Minimum

What You Can Do to Keep Your Car Depreciation to a Minimum

Ways to reduce your car’s depreciation.

A car is one such essential that you cannot look at as an investment but as a functional purchase. Depreciation is the difference in the cost of the car when you first bought it to the time you decide to resell it. This decline in price may be affected by the brand of the car, daily-use, wear-and-tear, time of sale, and more. A fact that keeps many people from getting a new car is immediate depreciation. The truth is the moment you drive the car out of the dealership, the value of the car drops a little.

Here’s what you can do as a car owner to avoid car depreciation:

  • Opt for brands that are renowned and in-demand. A reputable car brand will always give you better resale value.
  • Owning neutral colors is also a relevant factor. Cars with colors such as grey, white, and black have a higher resale as compared to rare colors.
  • Buy a new-model car. The older the car model, the lower it goes on the food-chain of trade. If you are expecting to trade off your car in a few years, read about model-updates of your car after the time of purchase.
  • Do not add modifications to your car. When you add parts that are not provided by the manufacturer, you put the integrity of the car into question.
  • Keep a check on your car’s odometer. If you envision a resale, then a lower mileage will give you a better price. An older car with lower mileage will gain better resale than one with a burnt-out odometer.
  • Owning quality insurance helps you keep your car depreciation low. The coverage from a well-known brand also gives your product its credibility.

These things will ensure your car depreciation per year is minimal. Once you’ve secure the right car, be sure to find the right car insurance. Contact 01 Insurance for all your auto insurance needs. We are happy to assist you today!