How To Reduce The Effects Of Car Depreciation?

Car depreciation indicates the reduction of its value. It can be calculated by measuring the difference between the amount you buy the car and the amount when you sell it. The study says that from 50% to 60% value of the most cars lose in first three years. The rate of reduction value depends on some factors like the user’s way of driving, the location where it was driven, or the maintenance style. Here we will like to share some top tips on minimizing the cost.

How car price affects depreciation?

If you measure the depreciation variation between small and luxury cars, it might not be remarkable. But if you consider the number, you can realize that it is huge indeed. People’s perception also plays an important role to calculate the rates. Many manufacturers try to convince buyers to buy their premium vehicles. But if the buyers are not sure about the quality, they might not be interested to purchase the car. So, the perceived quality of a car influenced its depreciation rate.

How fuel economy affects it?

Car maintenance cost can be a major factor influencing car depreciation. When the petrol and diesel costs rise, it also increases the cost. Large luxury cars suffer a lot in this situation. However, the small city car market faces a higher demand due to rising fuel costs. So, the running cost can affect depreciation a lot.

How to avoid it?

To reduce the depreciation cost of your car, you need to purchase an in-demand car at a low price. You can choose a city car or a supermini that can cost you comparatively less. As your buying cost is less, you can manage lower costs while selling it. But this way of reducing car depreciation may not suitable for all. In that case, it is better to keep your mileage low, charge regularly and take your car regularly for servicing. It may allow you to keep your car in good condition which may help you to reduce the depreciation rate of your car.