How to Avoid Car Depreciation

a car with coins on top of it

Prevent your car from rapidly losing value.

 

It’s common knowledge that new cars lose some of their value the moment they’re driven off the car dealership lot. Over time, cars continue to depreciate, which means they lose their value. When buying a new car or looking to get the most out of your current car, you should know what depreciation is and how you can minimize its effects.

 

What is car depreciation?

Simply put, car depreciation is the difference between the value you buy a car for and the amount you either sell or trade it for. Generally, cars take their largest hit in value during the first year they’re owned and after around three years, depreciation starts to slow.

 

How can I reduce the effects of car depreciation?

  • If you’re buying a new vehicle, buy one that’s in-demand and has lower running costs
  • Buy a nearly-new or a used car to avoid the most rapid depreciation
  • Keep the mileage as low as possible
  • Avoid adding modifications to the car
  • Keep a record of all maintenance and servicing done to the vehicle
  • Stick to more common car colors (grey, white, silver, and black sell the best)

 

These tips can help you to avoid a rapidly depreciating vehicle. Do you have questions regarding your car insurance? For your car insurance needs in Phoenix, Arizona, contact the professionals at American Premier Insurance. We are ready to get you reliable coverage.