Unfortunately, your brand-new car starts to lose its value as soon as you drive it off the lot. In the auto industry, newness is equated with higher value. Like any other product, cars simply get old and wear out. However, even if a car is in perfect working condition and has very few miles on it, it will still depreciate in value as the months pass. As soon as the model year ends, the value of your new vehicle drops considerably. The 2009 models are more desirable and thus more valuable than the 2008 model. Part of this has to do with improved features or aesthetic qualities of the new model. The other part is simply that consumers like whatever is new and different.
The single biggest, controllable factor in the depreciation of a car's value is its upkeep. All automobiles will experience a certain level of wear and tear that is unavoidable and expected. However, the car owner can do quite a bit to help the vehicle hold its value. A car with a clean and odor-free interior and a ding-free exterior will fetch a higher resale price than a car that has been in a few accidents and sports cigarette burns on the seats. Get all the recommended checkups, fluid changes and other maintenance in a timely manner. Keep a record of all work done to prove to a potential buyer that the car has been taken care of properly. Keep your car in the garage, and get it washed and waxed regularly. Keep all toys such as a sunroof, cd player and GPS system in good working order. People often place a higher value on such perks than things like mileage and aesthetic appeal.
Although good defensive driving can help to reduce the risk of getting into an accident, sometimes accidents happen anyway. A vehicle that has been involved in an accident will lose a great deal of its value, even if it has been repaired to the best of any mechanic's ability. Many cars are simply never right again after an accident, and most buyers know this. Mileage is also a negative factor in value. Of course, most of us buy a car to drive it, not let it sit in the garage. Therefore, mileage increases are inevitable. Other things that affect a car's value are beyond our control. A negative public view of your car's manufacturer can lead to a decrease in its value. Accident and safety reports, cost and ease of repairs, as well as the viability of the company, all have an influence. The car itself and what it means to society may also have an effect. Consider the differences in public opinion of SUVs and hybrids. In an increasingly emissions-conscious society, if your car is viewed as a polluting menace, it will lose value as models that are percieved as more environmentally friendly gain in value. Their market prices reflect these sentiments. In the same vein, gas prices have a huge effect on a car's value. As gas prices climb, a car that gets good fuel economy will hold its value more readily than a vehicle that gets 3 miles per gallon.
