Three ways to minimise car depreciation

When it comes to buying a car, depreciation is often unavoidable. But there are ways to help maintain the value of your car, should you ever wish to sell it on. Here are our top three tips for minimising car depreciation.

1.      Stick to Services

One of the best ways to maintain your car’s value is by keeping on top of services. A complete service history proves that your car has been well looked after, which most potential buyers look for. Typically, you should get your car serviced either every year or every 12,000 miles. It will cost you around £120 – which may seem steep – but looking after your car will save you money in the long term. By catching problems early, they’re usually cheaper and easier to resolve. Plus, your car is more likely to thrive for longer, so you won’t have to fork out for a new car as frequently.

2.      Buy Used, Not New

Car’s depreciate the most in the first three years of their life. According to Money Advice Service, this drop is ‘between 15-35% in the first year and up to 50% or more over three years’. So when it comes to purchasing a car, by used instead of new. Firstly, this will save you a huge amount of initial upfront costs. Secondly, the car will also hold its value much better than a new model, so you can avoid significant depreciation. The optimal age is 2-3 years, as you’ll avoid the biggest drop in value and wear and tear is likely to be minimal.

3.      Be Keen to Clean

Keeping your car clean and tidy is one of the best ways to maintain its value. Regularly hoover the interior to stop any dirt getting ground into the upholstery or carpet. It’s also worth investing in car mats to stop your carpet wearing away as you’re driving. When it comes to the exterior, there are two main things that you should keep on top of – bird poo and brake dust. Unfortunately, both can permanently damage your car’s paintwork or wheels if left. Make sure you wash away with hot, soapy water to avoid any unwanted deterioration!

If you’re concerned about car depreciation, then it might be worth getting GAP insurance. It covers the difference between the amount you pay for your car and the amount your insurance company will pay out if you make a claim. That way, you have peace of mind that you can replace the car if it was written off or stolen. Companies such as ALA offer a range of different insurance types, so you’re sure to find one that suits you and your vehicle!