5 ways to combat vehicle depreciation
When you start shopping for any big purchase, you’re likely to hear the term depreciation. This term is important to consider when shopping, especially when shopping for a vehicle… but why? Our Clermont Toyota dealership is here to discuss exactly what vehicle depreciation is and what it means for your trade-in or sale down the road, as well as 5 ways to slow it. After all, a car is an investment and you want to get the most bang for your buck when you eventually trade or sell it. Learn how to do just that!
What is vehicle depreciation?
First – what is vehicle depreciation? This term refers to the way your vehicle loses value over time. All cars lose value, regardless of their make and model, because of routine use and wear and tear. In fact, most cars lose somewhere between 15-35% in the first year they’re owned and up to 50% of their value in the first three years. As you can imagine, this takes a toll on the money you’ll put in your pocket when you eventually trade or sell. Also, you can end up “upside down” if you’re not careful – this is when you own more money than the car is worth. That’s why you have to take vehicle depreciation into account before you buy.
Toyota of Clermont’s tips for slowing depreciation
Some models hold their value better than others; for example, our Clermont Toyotas tend to hold value extremely well by industry standards. But regardless, you can take steps to enhance your car’s resale value and slow vehicle depreciation so you can get more money down the road. Here are 5 tips to help you make it happen.
#1: Get on a routine car maintenance schedule and stick to it.
Is your vehicle on a routine maintenance schedule for things like tire rotations, tuneups, oil changes, etc.? It should be – a car that’s been well-maintained and kept on a Clermont auto service schedule will hold more value than a car that routinely misses its service. Also, be sure to stay on top of repairs and nip them in the bud as quickly as possible (and keep any warranties that come with the repairs).
#2: Research before you buy.
As noted, some makes and models hold value better than others. Take that into consideration before you make your decision and sign the dotted line.
#3: Think about the climate and area of the country that you live in.
Certain features are more desirable in certain areas of the US. For example, people who live in the Northeast with lots of snow and ice value all-wheel drive a lot more than people who live in Central Florida, where we really only see rain.
#4: Consider size and price, as well as fuel efficiency.
Larger, more expensive cars tend to suffer faster vehicle depreciation, and cars that aren’t neutral colors are harder to sell. You should also think about fuel efficiency – a Clermont Toyota that’s economical at the fuel pump is more desirable to future buyers.
#5: Be mindful of your mileage.
You bought the car to drive it, but high mileage cars are harder to sell. Keep an eye on your mileage, don’t overdo it, and try to sell or trade in before you hit that high mileage marker.
Want more tips, need a trade-in appraisal, or want to get on a routine car care schedule? Call Toyota of Clermont today at (352) 404-7000!