Vehicles are immediately depreciated when you take them out of the showroom. Yeah, even without driving the car, the value of your car can reduce. According to a market survey, it reveals that the value of the car down’s to 10% less the moment it is driven out of the dealer’s place. And in the next 5 years, the value of the car will only remain 60%. Worry not! If you try these amazing hacks for reducing depreciation on your car, we are sure you will be soon out of the financial pain it causes to you.
Upkeep Your Car
It is no secret that be it electronic devices or automobiles, you can demand a good resale value if your car is in good working conditions – in and out. The number of miles your car is driven is also a factor that determines the resale value of your car. Technically, the lesser the kilometers, the higher the resale value.
Follow the instructions given in the manual along with the car and keep all the records of the work. It is also advisable to not make any major modifications in the car like changing the battery or window lettering, etc. Selling a car will become difficult then. Higher resale value is the indicator of lesser depreciation.
Choose High Resale Model
It is no secret that different models of cars fetch different prices upon resale. Some models are readily sold back. Research well before you select the model of your car. Make sure that the model will have a good resale value. This will also reduce the depreciation of your car.
Buy a Second-Hand Car
If depreciation is the issue, buying a second-hand car is a solution. According to the accounting principles, the rate of depreciation in the initial 3 years is relatively higher than the rest of the life of the vehicle. In such a case, if you buy a 3-year-old car, the burden of depreciation lies to the previous owner and you can escape from the depreciation cost.
Never Sell It
One of the tricks to reduce depreciation is to fetch the high resale value. On the off chance, you can also opt for the idea of never selling your vehicle. This is another tactic to reduce the cost of depreciation. The concept of depreciation hits you when you sell the car otherwise, it will only be limited to books of accounts.
Depreciation is a fictitious cost after all. As it is well said in the financial market that the market is like a roller coaster, the chances to get hurt is when you jump off. So, the best is to continue driving one car for years. And there is no harm in buying another one if your pocket allows.
Tax Write-offs on Depreciation
Cars used in business can also get the advantage of writing off some tax part on it—a nice workaround for cutting off depreciation. For more details on this, better you surf some taxation websites.
Boils Down to making Proper Car Selection
Nowadays and age there are lots of great choices of cars out there, and you have to decide for yourself. First of all, what are you looking for that satisfies your needs or wants, whether you need a car? It would help if you had all-wheel drive, a pickup truck and SUV, maybe you want something hybrid. How about high performance, lots of things to consider you have to keep things mainstream.
Let’s give an example of the pick makes that are consistently top sellers on the used car market. Toyota, Honda, Acuras, Lexus, those always do well as a resale. If you want a high resale value, when you want a European car. One more example BMW sticks with sort of the two and three series cars. If you are comfortable to hold with the fours and vehicles like that, more of the basics will always do a little bit better for you, in terms of depreciation.
The most crucial factor in beating car depreciation is color. Colors are a huge factor in that one-off particular lime green or crazy orange, neon, yellow. Those things look great, while you own them, but consider not everybody wants those colors.
If you have to stick with the grey color, black, white, and silver, the real, consistent mainstream is easy to sell if you are buying a high-performance automobile like Porsche, BMW, or Mercedes. If you are going with a manual transmission on a resale? Because what the purists want at the used car level now. If you are buying a large vehicle like S-class Benz or a BMW 7 series of Courcelles, come automatically.
Put your Car in Safe Zone
To do long term storage, what I recommended first is that you would get a fuel additive like a stay bill installed and then fill up the gas tank, It will keep any moisture and keep the gas fresh next step, I would say there is an oil change. Because fuel and things the oil has contaminants in it. So, I would get a new oil change. If you do not store your car properly in the safe garage place, if your car is clean not only outside, but the inside car sitting tends to attract rodents and if there’s any food or anything in the car.
They will find it, and they can do a lot of damage over six months during winter, summer, and harsh weather conditions. If you wanted to save your car? You can install carports, steel sheds and other steel buildings. These steel garages give the best protection against harsh weather and unwanted elements, debris, and burglary activities. If you go with the steel building and other commercial steel buildings, it will help you to minimize the car depreciation.
Do Proper Car Maintenance
If I talk about Americans, you will get a car in every house. Americans love their car very much. They do a lot to maintain it. But when it comes to car depreciation, we all get a little worried. Because no one wants to see how hard-earned cars are depreciated. To avoid car depreciation, you have to maintain your car regularly, which is as follows.
Do you know about the inner workings of your car? I mean it’s right if you are not an automotive engineer. Here you can get the basic maintenance things every motorist should be able to do. Adding windshield wiper fluid, checking motor oil, checking tire pressure, changing a flat tire, jump-starting a car, replacing the engine air filter, Inspecting the serpentine belt and last checking the cooling system.
No Rush Drive
If you have rush driving habits, that ruins your car and drains your wallet. Have you already been driving for many years or are you just starting to drive? This activity can be both exciting and exhausting, firstly it depends on the road conditions.
However, there is one important thing to consider while driving the behaviour of your car the longer you own a car. The driving habits you acquire unfortunately not all of those habits are good ones. Moreover the more experienced you become the harder, it’s to break them and very often those habits.
Also Read: Importance of Tyre Tread Depth
Sell Your Car by Own
Finally, depreciation is an easy math puzzle:
[purchase price] – [sale price] = [depreciation]
The further you get for your car when you trade it, the less you waste in depreciation. In common, you may get more through an individual sale than a trade-in.