What is vehicle depreciation, and why does it matter?
If you’ve ever made a big purchase – a car, a motorcycle, a boat, etc. – you’ve probably heard the term “vehicle depreciation” bandied about. But what does it mean, and more specifically, what does it mean for your investment? Toyota of Orlando is here to explain vehicle depreciation and how you can counteract it to hold onto the resale value in your next ride.
Why should you worry about vehicle depreciation?
Here’s the bottom line: when you buy a car, it depreciates. Simply put, this means that it loses value over time because of the wear and tear you put it through. Most cars lose 15-35% of their value in the first year (!!) and then up to 50% or more in the next three. This affects your car’s resale value and in turn, affects how much money you’ll get when you sell or trade it in down the line. Some vehicles depreciate less quickly than others; for example, Toyotas are renowned in the automotive world for holding their value well and getting you more bang for your buck as they age in comparison to other makes and models.
How can you keep your Orlando Toyota’s value high?
So, how can you combat vehicle depreciation? Here are some quick Orlando Toyota tips to help you retain the existing value in your vehicle and get the money you deserve when you sell or trade in down the line.
Tip #1: Do your research. Find out which makes and models hold value the best and base your final purchase on that data.
Tip #2: Stay on top of auto service. Keep your car on a routine car maintenance schedule at Toyota of Orlando for things like oil changes, tires rotations, etc., and be sure to take care of repairs as quickly as possible. A well-maintained car will hold its value and depreciate less than one that misses maintenance appointments on the regular.
Tip #3: Watch your mileage. You bought the car to drive it, sure. But cars with more miles on them depreciate faster! Keep your mileage at a reasonable number to try and retain some of the resale value already built into your ride.
Tip #4: Consider elements like size, paint color, and fuel efficiency. These elements may or may not be important to you, but they definitely affect vehicle depreciation. Larger cars that cost more upfront tend to lose their value than smaller, more affordable models. Additionally, you should choose neutral paint colors when shopping because those are more desirable to future shoppers down the road. And finally, choose something fuel-efficient – the more economical a car is with fuel, the more desirable it’ll be to a future buyer.
Tip #5: Buy for your climate. All-wheel drives are popular in climates with lots of snow and ice, but they aren’t as in-demand in climates like Florida where we don’t see much besides rain. Think about where you live and where you might sell or trade-in before you buy.
Want a trade-in appraisal or need to get on a routine car care schedule? Call Toyota of Orlando today – we’re open seven days a week for your convenience at (407) 298-4500.