Have you decided to purchase a new car from Cars4Us in Croydon for your regular needs? However, you have a plan to sell the car in the future. That is why having a good understanding of car depreciation is highly important for selling the vehicle at the right value. Every year, the car’s value depreciates. How much value does it lose in the first year?
Depreciation rate in the first year of a new car:
Depending on your brand-new car model, the vehicle loses almost 10 to 15% of its value in the initial year. The vehicle depreciates its value from the day you have started driving the car.
In fact, the cost of ownership is bigger than the cost of insurance or fuel. At the end of 3 years, the depreciation rate for your car in Australia is up to 57%. As automobile brands introduce newer and better car models, previous models become outdated faster. So, it is better to choose the latest models when you purchase a new car. It will help you sell the vehicle at the maximum price.
In Australia, the car depreciation rate can vary with different factors:
The vehicle’s brand-
The brand of your car is a significant factor in determining the depreciation rate. While some branded cars retain their value, others drop the value within a short period. Reliability and build quality also make a difference. If you have a cheap car model, its value will not last longer.
Condition of your car-
A well-maintained vehicle naturally has a higher resale value. History of collisions, servicing records, and some other factors affect the depreciation rate.
Mileage-
If your car has covered more miles, it will lose more value. However, you may try to keep the mileage down to retain the value for years.
Calculating the depreciated value of your vehicle:
The car depreciation rate can be calculated in various ways. You have to learn about the age of your automobile to calculate depreciation value. For instance, if it is a 1-year-old car, you have to do research to know the average value of similar vehicles. The straight-line depreciation process is another way to make calculations. In this method, you need to calculate the depreciation rate by dividing the vehicle’s cost by the approximate number of years it will last.
Limiting your car’s depreciation rate:
There are some ways to reduce the depreciation of your vehicles. For example, you should limit the distance you drive daily. Make sure that your annual mileage is less than 10,000 miles. You can check it from your odometer. Limited usage also minimizes the risk of damage and accidents.
Besides, you should keep your vehicle in a covered spot or garage. It will prevent exposure of your vehicle to weather elements like hail and rain. It is also essential to maintain your vehicle regularly. For instance, you can rotate tires, replace oil, and do other maintenance activities.
Although you have taken care of your new vehicle, it will lose its value. You can contact various services to know the value of your current car.
