4 Car Depreciation Hacks Courtesy of Kelley Blue Book
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Buying a car often comes with the risk of depreciation (a.k.a loss of monetary value due to the vehicle’s age and usage). In fact, most cars lose approximately 20% of their original value within their first year on the roads.
While some depreciation is unavoidable, there are several things you can do to slow it down and hopefully get yourself a better price for your vehicle if you ever decide to sell.
Below are four best practices that Kelley Blue Book suggests to help your car retain its value.
Keep up with regular maintenance for your car
A properly maintained car reflects how responsible you are as the owner. Not only will it help keep your car looking good, but also ensures that the car is safe for drivers and passengers.
- Regularly inspecting and maintaining your tires
- Checking the fluids, like coolant and fluids for brakes, transmission, windows, and power steering
- Changing the oil filter
- Checking the brakes, belts, and hoses
- Reviewing your car insurance and roadside assistance policies
With a bit of care, you can keep your car in good shape to negotiate a more profitable resale than you might otherwise be with a poorly-maintained vehicle.
Customizations can cost you down the road
Many people enjoy personalizing their cars’ look, sound, or performance with aftermarket modifications. This can set your vehicle apart from the pack, but this isn’t always ideal when it comes time to sell.
As the saying goes, beauty is in the eye of the beholder, and your dream customization might not be the same as someone else’s. With each added customization, your resale market narrows. Not to mention, your car insurance premium may be affected.
Some mods can actually lead to a voided warranty. The addition of a sunroof is a common cause of this, according to The Appraisal Lane.
However, factory modifications carried out where your vehicle was made will generally add trade-in value to your vehicle.
Tax breaks can help to combat car depreciation
There are a number of tax breaks out there to help car owners offset the costs of depreciation, including ones for folks who drive their vehicles for business purposes.
Investopedia also suggests some other options that you might be eligible for. If you have a hybrid or electric vehicle, you could get some money back for your fuel-efficient investment in the form of a tax credit.
If you feel so inclined, you could donate your used vehicle to a charity and receive a tax deduction for the car’s market value in return.
Selling the car by yourself
MORE: The Car You Bought During the Pandemic Could Be Worth Reselling Setting your own price and handling the sale can help you get more money for your car than you might otherwise at a dealership, especially in the current market. But it also makes you responsible for the heavy lifting.
And no, we don’t mean that you’ll have to carry the car to its new owner. You should do some research to determine what you could reasonably expect to get for the vehicle, and you should make sure you are comfortable with setting up and responding to advertising, the terms of the sale, and the location of the handover.
Reviewing your car insurance package is another great way to save money, as you might be paying more than you should. Jerry, a licensed insurance broker, helps you find affordable coverage that meets your unique needs. It only takes 45 seconds to sign up before our smart, speedy AI-powered app gathers and compares quotes from 50 top providers for you.