You’ve probably heard that a car’s value depreciates as soon as you drive it off the dealership lot. Unlike other assets like a home or investments, a vehicle is a depreciating asset. After years of wear and tear and racking up the miles, the value of your car is significantly decreased. When you sell your vehicle, the used car dealer purchases it for the resale value, which is the initial value minus depreciation.
While it’s not possible to sell your vehicle for the initial price you paid for it, a few things can help you increase the resale value. Continue reading to discover clever ways to protect your car’s resale value.
1) Shop Within Your Budget
When shopping for a car, be prudent. Look for affordable models that fit your monthly budget without squeezing your finances. You can also shop for used cars in Newfoundland to avoid the financial blow due to depreciation when selling the vehicle. Used cars have a lower sticker price than newer models and can help you lessen the financial impact when it’s time to sell.
2) Look for Cars with High Residual Value
Understanding how much your car will depreciate will help you maximize your overall investment. Do your homework and look for specific brands, models, and makes that have minimal depreciation. A vehicle with a high residual value means that the car is likely to retain the highest percentage of its initial pricing.
3) Drive Less
It’s no secret that the bigger the numbers you rack up on your vehicle’s odometer, the more significant the depreciation. If you want to retain the value of your car as much as possible, drive it less to avoid racking up mileage. Consider renting or using a ride-sharing app for long-haul drives.
4) Avoid Dents and Dings
When it’s time to sell your car, the potential buyer first inspects the vehicle’s exteriors. Don’t let dents and dings damage your car’s value. While parking, make sure that you park your car a few extra steps away from other cars to avoid scratches from nearby vehicles. However, dings and scratches can happen even if you’re a conscientious driver. Make sure to repair them as quickly as possible to retain the look of your vehicle.
5) Prevent Rust Formation
Your vehicle’s undercarriage is prone to deterioration due to sand, salt, and grime, causing the metal parts to begin rusting. Rusting quickens the depreciation rate of the vehicle. Adding a little oil can help prevent rust and keep your car looking good.
6) Wash and Wax Regularly
A shining car creates a great first impression. Wax your car regularly to maintain a flawless finish. In Canada, we recommend washing your car at least twice a month during the winters to keep it looking good and wash off the salt. If you clean your car by yourself, use efficient and safe car cleaners specifically designed for vehicles.
Avoid swirling car washes as they are abrasive to the vehicle’s exterior. Instead, opt for a touchless or self-spraying car wash to avoid scratching and damaging the exterior coating of your car.
7) Invest in Winter Tires
If you live in Newfoundland, getting a set of winter tires is a must as it helps prevent accidents that could cause severe damage to your vehicle. It’s also a good idea to stow away the wheel rims during winter because exposing them to salt, snow, and grime can cause them to lose their resale value.
Follow these seven tips to keep your vehicle in the best shape possible and enjoy the maximum resale value. Before buying your next car, use a car loan calculator for Canada to help you find a car loan that fits your budget!
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