The basics of car depreciation:Īny vehicle will generally be most valuable when it has just rolled away from the factory production line and into a showroom. It’s the rate at which your car’s value falls over time.
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How to improve your cars depreciation rateĬar depreciation is simply the difference between the price you pay when you buy your car, and the price you would get today if you decided to sell it.How important is car depreciation when buying or selling a car?.In some cases, you may be paying a higher rate of cover than you need, and if you don’t keep your details up to date, you may find yourself getting a much smaller payout than you would expect if your car is written off. It’s also good to keep a check on the current value of your car for insurance purposes. However, it’s not just about buying and selling. For example, a car worth £12,000 can often be worth around £10,000 a year or two later if it’s looked after, but you need to take care of it. We’ve put together this guide to help you wrestle control over your car’s ongoing valuation and market price. However, there are many other less obvious ways that you can minimise the effects of car depreciation. A high mileage, badly-maintained vehicle will become less valuable than a low mileage, well-kept example. Read on for depreciation enlightenment… Depreciation affects every car – it’s closely linked to both age and mileageĮvery new car will lose some value as soon as it drives off the forecourt.
It may seem simple and inevitable with this backdrop in mind, but many car sellers overlook the fact that understanding depreciation rates can save a lot of money when it comes to timing the sale of any vehicle. With electric switchover issues expected to impact ongoing fossil fuel car values significantly for the foreseeable future, no wonder depreciation has become such a hot topic among savvy car owners in recent times. The average rate of depreciation in the UK for older petrol and diesel vehicles has sped up rapidly in recent years, as the nation approaches the 2030 electric vehicle ‘switchover’ deadline, which will ban the sale of all new fossil fuel cars.Īnd with London’s ULEZ and other city-based clean air zones (CAZs) such as Birmingham’s Clean Air Zone accelerating car depreciation rates even further, now may be the ideal time to sell your car at Motorway to one of over 5,000+ verified dealers in our nationwide network before prices slump further. Removing any finance you may have in place on your car out of the equation, it’s the difference between what your car was worth when you bought it, and how much it’s worth if you were to sell it today.ĭepreciation is closely linked to both age and mileage until it reaches ‘scrap’ status, when its value can reach close to zero. Car depreciation is a simple idea in theory.
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