Top 4 tips to beat depreciation on your car

Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
Our authors
, updated on November 25th, 2021       

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Depreciation is an imminent cost that comes with car ownership. While there are certain vehicles that might depreciate considerably faster, in comparison with others, the same principle applies in most cases – 14 percent per year in the first three years, and appreciatively 8 percent in the following years.

If you purchased your car using a car loan, you would be required to pay a depreciation asset usually over 5 years So, you might ask yourself – is there something I can do to delay the rate of depreciation on my vehicle?

If you’ve bought a vintage item, then your vehicle will be imminently valuable, and survive the inevitable test of time. But the majority of vehicles will lose their value as years pass by. Now, let’s see a couple of tips that might be helpful in aiding you to beat depreciation on your car.

Do your research

Before purchasing a vehicle, do your research to find out which vehicles have held their value in time, and use this information to make a positive purchase.

Believe it or not, paint color and transmission play an important role as well. As a matter of fact, according to research, silver is at the top of Australians’ preferences when it comes to colors, it actually beats white and black. Additionally, Australians prefer vehicles equipped with automatic transmission over manual cars.

Timing is utterly important

Don’t underestimate the importance of choosing the perfect time to make your purchase. For instance, if you opt for buying a particular vehicle at the end of a calendar year, or before the newest model of a car is released, this can contribute to growing your possibility to bargain on the asking price. That is because dealers will want to sell off older stock models to make room for newer models, and you can use that to your advantage.

Car maintenance

Another important aspect you should take into consideration is keeping the receipts that prove you have maintained your car in perfect order over the years. This will serve as palpable proof that you have taken good care of your car, and a potential buyer is more likely to trust you. This will also allow you to ask a higher price for the car, as it is well-maintained, and you have evidence to prove that.

Equally significant is repairing possible minor damages that the car may have, including minor scratches, small dents, because this will also help you grow the value of the car.

Be patient

While you may be utterly eager to be the owner of your dream car, don’t settle for the first car you find. Being patient and shopping around will enable you to obtain your dream car at great price. 

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