How to Slow Down the Wear and Tear on Your Car so You Can Sell It for More
New cars lose value relative to their purchase price the minute you drive them out of the parking lot. While the exact amount varies by year, make and model, the Kelley Blue Book estimates that cars will lose 20% or more of their value in the first year and about 60% in the first five years.
Depreciation cannot be completely avoided. In fact, this continues until the vehicle is practically useless, although the speed slows down as you travel 100,000 miles. However, if you are planning to resell your vehicle for several years, or simply want to maximize its value, there are several things you can do to minimize depreciation.
As a buyer: select a vehicle with a high resale value.
Some cars retain their value better than others. For example, Toyota tends to fall in price much more slowly than cars from other manufacturers. (Oddly enough, we’ve seen used 60,000-mile Tacomas sell for almost the price of a new truck.) If you plan on reselling your vehicle long before you hit the ground, you can choose a well-known make and model. due to the high resale value .
Another option is to buy a used one. Again, some cars have their own value, so you won’t be able to save upfront depending on what you’re looking for. But if you’re buying a car that’s five years old or has many miles on it, most of the depreciation has already occurred. Just make sure the car is well looked after (see our next point).
As an owner: support your vehicle and don’t tune it too much.
This is pretty obvious. Take good care of your car and it will most likely be worth something when you sell it. This includes regular scheduled maintenance and any necessary corrections, as well as keeping it clean. Write down everything that you have done to prove that you are a responsible owner. Finally, less than the average mileage per year can help your vehicle retain its value over comparable vehicles in the same model year.
And while you might appreciate a custom ride, customizing your vehicle can make a sale difficult. This includes tinting windows, adding decals, and any other flashy aftermarket upgrades.
As a seller: sell yourself
Exchanging or selling your vehicle to a dealer will lower your bottom line. If you can do the sale privately, you can get close to the true market value. The more cash you get when selling your car, the less depreciation will be.
Bonus: Subtract depreciation from your taxes
If you use your car for business or part-time work, you can deduct the depreciation deduction from your tax return .