It’s a hard fact that once you’ve driven a car off the dealership forecourt it begins to depreciate in value. Cars can lose anything between 10-35% of their original value in the first year alone, dependent on the type of vehicle and how well maintained it is.
In order to avoid your car depreciating in value, there are some basic sensible steps to take – have it serviced regularly, drive sensibly and don’t neglect the exterior of the vehicle (keep it in a garage if possible).
However, there a couple of considerations many people miss, which we’ll take a look at below:
Buy a used car and run it until it will run no longer
Even used cars lose their value. If you just want something to get you from A to B (and you aren’t fussy about the type of vehicle you drive) then purchasing an older used vehicle and using it until the mechanics bills become too high is a worthy option. When the vehicle is no longer road-worthy, simply repeat the process and purchase another used car. A reputable dealership (such as LG Car Sales) will have a constant stream of good used vehicles to choose from, meaning you’ll never have to compromise on quality.
Purchase a brand new car and trade it in frequently
If your budget is large enough and you’ve got a penchant for the latest vehicles, purchasing a brand new car is something of a joy – there’s just something so appealing about taking the latest model straight from the forecourt with up-to-date plates. However, new vehicles depreciate quicker in value, so if you want to keep up to date it’s wise to trade in frequently. By trading in within two years you can guarantee a decent return on investment to put towards your next new vehicle.