If there is only ONE word to sum up the reality of owing a car, it would be: devaluation. Once you buy a car, it starts to lose its value. Over time, your car will depreciate because of the eventual wear and tear of car parts.
According to Edmunds, their resident experts mentioned that a car will immediately lose 11% of its estimated value the moment you drive off the car dealership gates. Given that not a lot happens with your car, but it will still lose around 15% to 25% of its total value each year. By the time you have reached the first 5 years, your car already lost more than 50% of its sale value.
As time passes, your car will also dwindle and get affected by depreciation. If you plan to drive the same car by the time you are old, you better do some thinking. Moreover, as the clock ticks, the value of your car also changes. If you plan to sell or trade in the future, consider the factors that affect the depreciation of your car.
That’s why taking care of your car will give you an extension. You will not be force to spend thousands for repairs or you can delay buying a brand new car. So, now, let’s now discuss the important factors that determine your car’s value.
Determining Your Car’s Value
What you need to do is to research first on how quick your car depreciates. Look into its depreciation value, and find some helpful tips on how you can soften the negative impact. For the most part, the factors that affect your car’s value are the model and manufacturer of your car, the popularity of the brand, the specific details of your vehicle specifications, trim levels, the mileage, the current condition, the maintenance logs, and the physical appearance.
The Car Model and Manufacturer
If you plan to resell or trade your car in the future, make sure to check on the resale value of the vehicle. Does it retain its value over time? Well, there are superior brands when it comes to reselling and trading it due to popularity and reliability, which allows you to demand for a higher resale price. You can do your own research and look for something that fits your style of living and estimated budget.
For starters, you can begin your search with these websites below:
These websites will give you a head start if you want to do your own research. Then, you will have a rough idea on your car’s value. More factors will be discussed on Knowing Your Car’s Current Value (Part 2). Once you have a car in mind, you can have it checked. Whether it is a fairly new car or an old model, you can have it assessed by A+ PLUS AUTO GLASS.