5 Things That Are Depreciating Your Cars Value
17 September 2019
Whether you have got your eyes on some new wheels or simply looking for a little extra cash, when it comes to selling our cars, we can often be caught out by how much our vehicle has depreciated since purchase.
As little a year on from purchase, you can find your self at a considerable loss. For many owners, this comes as a nasty surprise, and you might be asking yourself why your car has depreciated so much in what feels to be such little time.
There are a number of factors that can contribute to the loss of value, so with that in mind let’s take a look at the most common culprits.
One of the most common reasons why cars suddenly start to depreciate is due to the number of miles it has racked up on the clock.
All those hours commuting and travelling on the weekend to your favourite spots all add up. On average, every year UK motorists drive more than 7,000 miles a year, with a considerable percentage exceeding the 10,000-mile mark.
Before you know it your car is exceeding 100,000 miles and the value is suddenly plummeting from what you paid the year previous.
Remember all those times you accidentally caught the curb or put off those small interior defects?
As a car gets older, small defects to paintwork, interior scruffs and alloys scrapes can really show the age of the vehicle. For prospective buyers, these minor oversights are incredibly noticeable and resemble years of neglect.
Although they may seem minor at the time, it can drastically affect the overall price.
Number of Previous Owners
For many sellers, the number of previous owners isn’t high up on the list for car depreciation, but unfortunately, it does play an important role in what you can expect to receive from a buyer.
A high number of previous owners can set off alarm bells for purchasers, especially if it’s been in a short previous of time.
Although it might be unfounded, purchases may be concerned about the reliability of the car. Additionally, not every car owner maintains vehicles to the same level. The higher the number of previous owners can increase the chances of a patchy service history.
The service history is equally as important as mileage when it comes to car value. For many prospective second-hand purchasers, a patchy service history can soon diminish the chances of a sale.
With this being said, if the vehicle has been notably looked after and is in pristine condition, some purchases may choose to haggle over price.
If vehicle age and mileage really aren’t on your side, a good full-service history can really help add a few pennies on the asking price.
Vehicle Reputation & Reliability
Car reviews are endless and simply a Google search away.
Whether you have purchased a vehicle with a shady reputation unknowingly, unfortunately, whether or not it’s been reliable over the years really doesn’t carry much weight.
Although it may bring peace of mind to the purchaser, if they know it’s got a bad reputation, they are unlikely to pay top whack.
If left unresearched before purchase, commonly, many owners are completely unaware of the reputation of a car until problems start to arise. Either way, a bad reputation doesn’t bode well for value.