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Buying a new car is an exciting time. It\u2019s fun to wander up and down a dealership looking at all the new cars to find the perfect one.<\/span>\u00a0<\/span><\/p>\n Of course, when buying a new car, there are several cost factors to consider, such as:\u00a0<\/span>\u00a0<\/span><\/p>\n What many people <\/span>don\u2019t<\/span> consider, however, <\/span><\/span>is <\/span>the cost of car depreciation.<\/span><\/span><\/em><\/strong><\/p><\/blockquote>\n In this article, we\u2019re going to take a deep dive into what car depreciation is, why it happens, how to calculate car depreciation and the steps you can take to help maintain the value of your car over time.<\/span>\u00a0<\/span><\/p>\n If you\u2019re thinking of buying a new car soon, this article will help you to make a more informed buying decision.<\/span>\u00a0<\/span><\/p>\n Car depreciation refers to the amount of value that your car loses over time.<\/span>\u00a0<\/span><\/p>\n Of course, while some cars can hold onto most of their value over their lifetime, others lose a significant amount in the first year alone.<\/span>\u00a0<\/span><\/p>\n For this reason, it\u2019s important to understand the different factors that affect the rate at which a car depreciates.<\/span>\u00a0<\/span><\/p>\n Here are some of the most common reasons why cars depreciate in value over time:<\/span>\u00a0<\/span><\/p>\n Most things, unless they\u2019re collectibles, tend to become less valuable as they get older.<\/span>\u00a0<\/span><\/p>\n Every car naturally suffers some form of wear and tear the older it gets and the more it gets used.<\/span>\u00a0<\/span><\/p>\n The more you drive your car, the more likely it will need repairs \u2013 hence it depreciates in value.<\/span>\u00a0<\/span><\/p>\n As well as these, the mere fact that car manufacturers are always coming out with new cars every year means that, even if you buy a top-of-the-line model, it won\u2019t stay top-of-the-line for long.<\/span>\u00a0<\/span><\/p>\n As mentioned, each car depreciates at a different rate, but there are rough guides you can follow to help you understand the average rate of car depreciation and how to calculate car depreciation.<\/span>\u00a0<\/span><\/p>\n Generally, a new car will lose around 20% of its value in the first year of ownership. This includes the 10-15% it loses the moment it\u2019s driven out of the dealership (yes, that\u2019s a true fact!).<\/span>\u00a0<\/span><\/p>\n Over a five-year period, the average car loses around 40% of its original value.<\/span>\u00a0<\/span><\/p>\n There are a few key reasons why some cars depreciate more or quicker than other cars do:<\/span>\u00a0<\/span><\/p>\n Popular cars, such as small SUVs and family cars driven by the masses, tend to hold onto their value longer than, say, luxury cars which are much more costly to run and maintain.<\/span>\u00a0<\/span><\/p>\n Factors such as colour and fuel efficiency also play a role in car depreciation and resale value as well.<\/span>\u00a0<\/span><\/p>\n Some cars are just in much higher demand than others on the market.<\/span>\u00a0<\/span><\/p>\n If most people want an economic mid-sized SUV and they\u2019re hard to come by right now, your SUV is going to be much easier to sell than a high-end two-seater car that chews through fuel.<\/span>\u00a0<\/span><\/p>\n A high-quality and popular branded car that doesn\u2019t cost a lot to keep it running is going to hold its value far longer than a car built by a manufacturer you\u2019ve never heard of with parts that are almost impossible to get replaced in Australia.<\/span>\u00a0<\/span><\/p>\n Now, we\u2019re going to give you a few tips to help minimise your car\u2019s depreciation as much as possible.<\/span>\u00a0<\/span><\/p>\n There are several things you can do over the life of your car to help it maintain its value:<\/span>\u00a0<\/span><\/p>\n First and foremost, when looking to buy a new car, spend some time researching the cars that hold their value better than others.<\/span>\u00a0<\/span><\/p>\n Look for cars that will still be in high demand as used cars, and remember factors such as colour and style when considering resale value too.<\/span>\u00a0<\/span><\/p>\n You want to enjoy your new car and use it as much as you need, but if you\u2019re looking to sell it in a few years, try to keep those long drives on the open road to a minimum.<\/span>\u00a0<\/span><\/p>\n A 5-year-old car with only 60,000km on the odometer is going to sell for more than a similar car that\u2019s already ticked over 100,000km.<\/span>\u00a0<\/span><\/p>\n This one is a no-brainer. Get your car serviced regularly, in line with the manufacturer\u2019s recommendations. Keep it clean, inside and out. If there\u2019s any damage, like small dents or paint chips, get it taken care of immediately.<\/span>\u00a0<\/span><\/p>\n Hopefully, by now you have a better understanding of how car depreciation works, and you can use what you\u2019ve learned to help you make better decisions when buying and maintaining your new car.<\/span>\u00a0<\/span><\/p>\n Of course, if you\u2019re looking for help when buying your new car, Private Fleet can help.<\/span>\u00a0<\/span><\/p>\n\n
What is car depreciation?<\/span><\/b>\u00a0<\/span><\/h2>\n
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<\/p>\nWhy do cars depreciate in value over time?<\/span><\/b>\u00a0<\/span><\/h2>\n
Age<\/span><\/b>\u00a0<\/span><\/h3>\n
Condition<\/span><\/b>\u00a0<\/span><\/h3>\n
Mileage<\/span><\/b>\u00a0<\/span><\/h3>\n
How much do cars depreciate in value over time?<\/span><\/b>\u00a0<\/span><\/h2>\n
Why do some cars depreciate more than others?<\/span><\/b>\u00a0<\/span><\/h2>\n
Make and Model<\/span><\/b>\u00a0<\/span><\/h3>\n
Level of Demand<\/span><\/b>\u00a0<\/span><\/h3>\n
Brand Reputation<\/span><\/b>\u00a0<\/span><\/h3>\n
What are the best ways to maintain the value of your car?<\/span><\/b>\u00a0<\/span><\/h2>\n
Do Your Research<\/span><\/b>\u00a0<\/span><\/h3>\n
Keep Your Mileage Low<\/span><\/b>\u00a0<\/span><\/h3>\n
Take Great Care of Your Car<\/span><\/b>\u00a0<\/span><\/h3>\n
Find the right vehicle at the right price with Private Fleet<\/span><\/b>\u00a0<\/span><\/h2>\n