Car depreciation is unavoidable. With wear, tear, and age it's inevitable that your car is going to lose value.
While it's impossible to predict the true depreciation of your car, when it comes to selling a vehicle, many buyers are shocked at how big the blow can be.
Typically, cars lose around 10% of their value as soon as it’s driven off the showroom floor – therefore novated leasing is an attractive offer to many car buyers. You start by saving 10% on the GST of your new car!
There are some exceptions to the depreciation trend, including classic cars or rare models. However, the average car buyer isn’t looking into these.
Here are the 5 Easiest Ways to Minimise Your Cars Depreciation
Choose a badge with an excellent brand reputation
Buying from a brand with a great reputation will help your vehicle hold its value. Customers are willing to pay more for a car that they have confidence in and know is built well.
Opt For a Popular Paint Colour
The colour of your car has a big impact on depreciation as it directly affects the number of potential buyers when you go to sell your car!
The most popular colours: black, white, grey, and silver, hold their value the best as there are plenty of buyers looking for these colours.
When is the model due for an update?
When shopping for your new car, be sure to check when the model is due for an update.
A product cycle generally lasts from three to six years, with a mid-model refresh.
It’s important to take note that when a new model is released the previous version become outdated in design, technology, and safety features. This means the older model may drop significantly in value.
Keep your car in excellent condition
Take care of your car and give it the TLC it deserves.
Yes, this means regularly servicing it along with the manufacturers servicing schedule, cleaning it, maintaining the interiors, repairing any dints or scratches and parking it indoors if possible.
Buyers appreciate a well looked after car and are willing to pay more for it!
Poorly treated cars take a big depreciation hit when it comes to selling it.
Keep the odometer reading low
The fewer kms your car has travelled, the more valuable it will be as the car has undergone less wear and tear. The closer an odometer reading is to zero, the newer the car seems.
Contact Remunerator today to discuss the best vehicles to avoid high depreciation! Call us on 1800 501 703 or email at novated@remunerator.com.au