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Can Car Depreciation Be Minimised? 

There’s nothing more exhilarating than purchasing a new car – that new-car smell, the immaculate interior…

But it’s no secret that the value of a new car can drop quickly. It’s important to keep in mind that this varies across manufacturers and models, and that no two cars will decrease in value at the same rate.

In this article, we share a few top tips on what you can do to help minimise your car’s depreciation.

What Is Car Depreciation?

Simply put, car depreciation is the difference between the price you purchase your car for, and what you can get for it when it comes to selling. The drop in value and difference between these two prices is what is known as depreciation. It’s worth remembering that the majority of cars will take their biggest hit of depreciation in their first year of ownership, falling between 15-35% on average. After this, the decrease in value slows gradually.

Ways To Minimise Depreciation

There are several ways to decrease car depreciation over time. One obvious option is not to opt for buying your car outright, but instead, you could lease your car for a set amount of time. This means when you trade your car back in at the end of the lease, any decrease in value is of no bearing to you. But focussing solely on ways to slow the dip in value when you have purchased your car outright, here are a few tips to minimise the depreciation:

  • Do less mileage in your car
  • Keep your car in good condition 
  • Get any repair work done on it in a timely manner
  • Drive carefully to avoid any bumps and scratches
  • Always park in a safe place where the risk of damage is low
  • Regularly top up your car fluids
  • Avoid driving in treacherous weather conditions to help prevent accidents from happening 

Consider GAP Insurance 

Basic accident breakdown protection it’s enough when it comes to paying out for damages in an accident. If your car is written off, damaged, or stolen, basic insurance only covers the cost of your car at the time of the incident. GAP insurance can ensure you’re never out of pocket, by covering the difference in cost between what you originally paid for your car and what your insurance is willing to cover at its current value. You can rest easy knowing that even if the worst were to happen, you’ll still get every penny back that you originally paid for your car, despite any depreciation.