In one word, we call this ‘depreciation’.
Depreciation is one of the biggest factors which affect a car’s running cost
According to Toyota South Africa, car depreciation is:
“the effect that wear and tear, usage, mileage and economic conditions have on the value of your car. As it ages, its value is likely to fall.”
New cars tend to depreciate the most in their first year. In their second and third year, depreciation is much less.
But, in layman’s terms, car’s value will depreciate as soon as it touches the road. However, the rate of depreciation decreases as the car gets older. Thus, the sooner you sell your car, the more cash for cars you will receive!
Does this mean my second hand car is losing its car resale value?
Well, it depends on how long you’ve had your car. If you’re looking to get your car’s worth back when you decide to sell your car privately for cash, it’s probably best to start weighing up your car selling options, reconditioning your car for resale and look for car buyers to buy your used car.
We’ve already said that depreciation impacts the value of a second-hand car, but so does its physical condition.
Would you be interested in an advert showcasing an old, rusty second hand car? If you want to attract the perfect car buyer, it is important that your used vehicle is not only in perfectly running condition, but also cosmetically appealing. Get your car cleaned, damages repaired, ensure there are no tyre or upholstery wear-and-tear, windscreen chips or cracks, and no active dashboard warning lights.
But, what about the effects of depreciation on my second hand car?
Unfortunately, time is of the essence, and this means you cannot avoid car depreciation but only minimise its effects when buying a car, by taking the following into account:
- Popular car colours count, as they stand a greater chance for resale – Buy a car that has neutral colours, such as black, silver or white.
- Car owners want safety and comfort – Buy a car that has central locking, an anti-lock braking system, parking assistance and navigation equipment.
- Fuel economy for the new economy – Countries across the globe are starting to ban high-polluting petrol and diesel combustion engines, so make sure your new or used car has good fuel economy.
- Keep the mileage low – The lower the mileage, the better your used car resale value.
- Maintain a consistent Service History record – You’ll be sure to get your second hand car’s worth if if you keep it well-conditioned and clean.
- Get covered – If you’ve got a garage, use it. If you don’t, get a protective car cover.
Your car devalues each passing month, no matter how much you use it. With city-traveling used cars more exposed to physical damage such as oil sedimentation and rust formation, it may require more servicing, reconditioning or repairs – thus, causing burning holes in your pocket due to high maintenance costs.
But, why put yourself through this hassle, when you could use your time and money to improve your lifestyle instead – it’s the age of personal health after all!
Start saving and get a free instant online quote on www.carzar.co.za. We also guarantee the best resale value for your car at your final inspection, so book an obligation free inspection at your most convenient CarZar Car Buying Centre across South Africa or at your preferred location.
If you’re happy with your final cash offer, then accept it and we’ll make an instant payment, and guarantee transfer of ownership, free of charge and without any effort on your part!