Most people are oriented towards finding out how much a car costs when they want to buy it. However, in time, when you start thinking about buying some other car and sell your old one, the term depreciation start appearing.
It refers to the difference between the money given for the car and the money you will get when you sell it. Usually, the value of the car drops approximately 40-60% after 3 years. Here are some of the things that affect the deprecation over time.
Mileage decreases the price
On average, people usually go over 10,000 miles per year. If this number goes up, this means that the value of the car will drop even more. You need to be ready for this and don’t get surprised especially if you are constantly on the road. Buying a new car will be a significant investment after a while.
Reliability is one of the factors
There are some cars that are simply favorite among drivers. It is just how it is. Reliability will always be one of the important factors. If a car has proven its reliability on the market, its price will not be decreased as dramatically as other types of cars. Check it out if you are interested to find out more about the ways you can sell your junk car if it’s not in a good condition anymore.
The number of owners
When it comes to this factor, the general rule of thumb is that the fewer owners the car had, the bigger value it will have. As the number of owners increases, the value will start dropping. It is as simple as that.
This is not without the reason for sure, because this means that the car will be better maintained, with fewer repairs and damaged areas. More owners of the car equal bigger mileage, but it also means that the parts are older and there is a greater chance that it will break down soon.
The history of service
It is truly helpful when the new owner can see the service history. It will help him to understand better what has been done in the past on the car so that he can take appropriate measures to keep the car in the good shape. This is why it is truly necessary to keep a record of all the repairs done, so when the time comes to sell your car, you can give all the records to the next owner.
The overall appeal of the car
The reliability is very important, as previously said, but the overall appeal refers to that and much more. If the car is wanted on the market, its value will not drop significantly. It will hold its value more than the cars that people don’t like in general.
When looking to buy a car, people want to get a bigger value for less money, that’s just how it is. Having a very fuel-efficient car will surely impact the way it is ranked on the market. In general, the more miles per gallon, the more people will want to have it because that means more money saved along the way.
Its overall condition
The way the car looks is very important. It needs to be without any visible damages. However, this is not all. When buying a car, people usually consult with a mechanic who checks everything that is beneath the hood which can lead to discovering many issues.
When the car is well maintained, it will cost more on the market. On the other hand, there is significant damage to the car because of the accident, you should expect that the price will significantly go down. If the parts are old, that means more investment in the long run. Again, this means that the price will be significantly lower when compared to the car that is better maintained.
The size and the model
The price of luxury cars tends to drop more when compared to the price of the small cars that are very affordable and that can be easily maintained. The reason behind it is that maintenance for luxury cars costs more than for regular cars. People who usually buy them do it for pleasure and then sell it when they realize that it is not a very practical solution.
Cars that require paying enormous tax every year are not very popular among drivers because the cost of having a car just keeps adding up. Every additional expense can be a significant burden on the budget. This is why their price tends to drop quicker. People are ready to give them up at a lower price just to switch to some other, more affordable solution.
Every car is unique
With all these things taken into consideration, it is important to understand that each car is a different story. Depending on the situation, the car can cost more or less, depending on the opportunity, the overall condition the car is in and how fast the owner wants to sell it. Sometimes, people need to sell their cars fast, which will significantly impact the price.
These were the general factors that impact the value of the car depending on its condition, model, size, fuel efficiency. When the car is no longer in the condition that it cannot be sold, there is still some value to it, because it can be sold for parts or as a junk car. Companies who deal with this type of business make it really simple for car owners who want to get rid of their cars fast. Every car can give a little more value even when you realize that you have come to the end of the adventure with the car you loved so much. Utilize the money from selling it and direct it towards purchasing a new car that you will love too.