A car loses value every year it’s on the road. The decrease is typically due to wear and tear, an increase in mileage, age and modifications.
On average, a vehicle loses 15% of its value every year following the first year. That number can fluctuate, and you can help your vehicle retain its resale value by taking a few simple actions. Learn more about how to maximize the long-term value of your car or truck here.
Be Careful With Mileage
Limiting your vehicle’s mileage can be difficult if you travel often for work. Unfortunately, certain mileage turning points can drastically reduce a car’s value. These markers are at 30,000-40,000 miles, 60,000-70,000 miles and over 100,000 miles. They’re in correlation with the vehicle’s first scheduled service, when major components begin to fail and when the car typically needs frequent, costly maintenance (over 100,000 miles).
Consider renting a vehicle when traveling to reduce mileage and preserve its resale value.
Perform Regular Service
Your car’s potential buyer wants to know you took care of it. A well-maintained vehicle generally lasts longer and requires less maintenance. Perform regular maintenance as the manufacturer recommends and keep the receipts to prove it.
Refrain from Modifications
You may feel inclined to tint the windows, upgrade the audio system or add a spoiler to your new vehicle, but modifications can rapidly deplete its resale value. Not all buyers want the same upgrades as you, so you may limit your market by making such additions.
Choose the Right Vehicle
Specific vehicles have historically higher resale values than others. Research which brands, models and body styles tend to retain their value. If you already have a car or truck in mind, research its resale value over three, five and seven years before buying.
Numerous factors affect a vehicle’s resale value, such as the exterior color, cigarette smoke odor and fuel efficiency. Find out more about how to preserve your car’s value in the accompanying infographic.
Infographic created by Capital Auto Auction
