Everyone knows that vehicles depreciate over time, and while some models lose value faster than others, there are things you can do to reduce the amount your car depreciates and maintain the future value of your car.
Be your own car depreciation calculator
When you start shopping for a vehicle, one thing to think about is how much certain models tend to depreciate compared to others. If car depreciation is a major concern for you, have a look online and research which year/make/models hold their value better than others and check out some car depreciation calculators that are specific to the vehicles on your short-list.
There have been recent studies that look at the depreciation of different vehicles based on their colour, so do some reading and factor this information into your choice as well.
Combat car depreciation with proper maintenance
One element of car depreciation that’s within your control is how well you maintain your vehicle.
Try and stick to the manufacturer’s recommendations for things like changing the oil and replacing the filter, and hang onto the records of your service and repairs. Taking care of your car along the way helps combat depreciation by catching little problems before they become big (expensive) problems. Plus, holding onto the records proves to potential buyers that the car has been well-cared for – something that they’re likely willing to spend a few extra bucks to know.
Celebrate the history
You know all those resources you used to research your own used car purchase? Used car value calculators, listing sites, book values and car depreciation calculators? Well, your potential customers have access to the same tools, so be upfront and honest with them about everything that’s happened in your vehicle’s past. Things like previous damage can impact a car’s value. The best way to highlight this transparency is by showing them a CARFAX Canada Vehicle History Report.
Included in the purchase price of every CARFAX Canada Vehicle History Report is the CARFAX Canada True Value™, an online tool that calculates used car value based on how much similar cars have sold for in your area, adjusted to consider the unique history of that specific car. You can start out by getting a True Value range for free, so have a look at this before setting your asking price.
Events from the vehicle’s past can impact how much it has depreciated, but providing this information will give you the chance to explain any yellow-flags from the history and show that previous damage has been repaired. CARFAX Canada VHRs also have information about the vehicle’s mileage, service history, where it’s been registered and (depending on which report you buy) if there are any active liens on the vehicle in the Canadian province or territory where it was registered or had its registration renewed within the past year.
Location impacts the future value of your car
Canada has many different climates which means different ways to maintain the road causing different types of wear-and-tear. For example, icy winter roads in Alberta are treated with sand to de-ice, but most other parts of Canada use salt instead – and there are pros and cons to both. Salt can corrode metal parts, but sand can chip paint and windshields, and there are buyers out there that have strong feelings about which agent the vehicle they’re buying has been exposed to. It’s also important to consider how the industry and climate in certain areas can impact the demand for particular vehicles. Check out CARFAX Canada True Value™ – it adjusts appraisals to consider a vehicle’s specific history, including where it was driven.
Odometer readings impact car depreciation
Next time you take a long road trip, consider how it will impact the future value of your car. The average Canadian drives 20,000 km per year, and while urban dwellers and long-range commuters are both accounted for in this number, lots of long trips that jack up your vehicle’s odometer reading can impact the resale value of your car.