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Can I Reduce New Car Depreciation In Paris?

Can I Reduce New Car Depreciation In Paris?

Car value depreciation is the bane of every motorist. The gradual decreasing of value of all cars as they age and are used. It’s part of the cycle of car ownership and something we have all had to make our peace with. But is there anything you can do to reduce new car depreciation?

 

Our Paris auto loan team asked our sales and technical teams to find out.

 

Car value depreciation

 

Car value depreciation affects all vehicles. Cars, trucks, SUVs and commercial vehicles too. It impacts new vehicles the most but also used vehicles.

 

As soon as you drive a new vehicle off the lot, it can lose up to 25% of its value. It will continue losing value at a slower rate for the rest of its life. Used cars also depreciate but at a slower rate as that initial loss has already passed.

 

Can you Reduce New Car Depreciation?

 

There is no set path of depreciation. Much depends on the make, model and even colour of the car. Mileage, condition, trim and options all play a part.

 

It’s a steady downward path but there are a few things you can do to slow things down a little.

 

Buy a car that depreciates slowly

 

Some car manufacturers and models of car depreciate slower than others. Identifying these and buying a popular model can mean slower depreciation.

 

Part of this is down to brand cache, where some premium brands known for quality and comfort depreciate slower than others. Other brands that produce popular volume cars can also depreciate slower.

 

That said, some premium brands depreciate very quickly and some volume manufacturers struggle to hold onto their value due to the sheer number of them on the road. Careful research is required here!

 

Servicing and maintenance

 

Maintaining the service schedule can also help slow down depreciation. A car with a full service history is seen to have been well looked after and should have a higher value than the same car without a service history.

 

The same for maintenance. Keep the car well maintained and in good condition and the value should reflect that. This is especially true if you keep receipts for any work you have done on the car.

 

Vehicle condition

 

As well as maintenance, a car that’s kept in good condition will also have a higher resale value than one that doesn’t look so good. Trading in a car in poor condition means the dealer will either have to pay to have it improved or take a lower price at auction.

 

A car in poor condition will also be harder to sell on the private market, so will have a lower value.

 

Mileage

 

The final big influence over vehicle depreciation is mileage. Low mileage cars are seen as having more life left in them, so are more valuable. Higher mileage cars are seen as coming with more expensive maintenance requirements, so are less valuable.

 

Don’t let that influence how or where you drive your car but bear it in mind when calculating the resale value when you’re preparing for an auto loan.

 

When you’re ready for a car lease or loan, get in touch with the Paris auto loan experts at Northway Ford for great deals on auto finance.

 

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