What Is Car Devaluation?
Car devaluation is the difference between how much your car was cost when you purchased it and what it’s worth when you sell it. The value of your car goes down over time. So, the more you drive your car, the faster your car’s value will devalue. If you bought a car tomorrow for $20,000 and then sold it three years from now for $12,000, that means your car dropped 40% of its value during the three years you had it. That’s car devaluing in a nutshell.
What Causes a Car to Devalue?
Now, several factors can put a hole in your car’s value. Some you can sort of handle and others you can’t. Here are some of the biggest factors that lead to car devaluation:
- Mileage: The more miles you drive, the less your car will be worth. But if you can keep your car’s mileage down, your car will be more of its value.
- Fuel economy: Have you seen many Hummers on the road lately? That’s because car buyers like cars that get more miles per gallon.
- Shifting consumer preferences: Like fashion trends, people’s zest in cars tend to change. Some years, peoples favor sedans. Other years, they prefer SUVs. More popular car models won’t depreciate as much as others will.
- Condition: Damage to the car will put a scratch in your car’s worth when you try to trade it.
- Reputation: A car that’s built to last will hold its value more than a model that has an unofficial reputation for breaking down or is regularly in the news for recalls.
Those are just a few things to consider when evaluating your own set of wheels.
How Quickly Do Cars devalue?
OK, while many factors go into how and why cars devalue, there’s one thing that is almost always true no matter what type of car you buy.
One Minute: A brand-new car drops somewhere between 9–11% of its value the moment you drive off the lot. So, with a $30,000 new wheels, you’re throwing $3,000 out the car window as you drive the car home for the first time!
After One Year: Research reveals that new cars undergo their biggest drop in value within the first 12 months of ownership. After one year, your car will probably be worth about 20% less than what you bought it for.
More than Five Years: After that sheer first-year dip, that new car will devalue by 15–25% every year until it hits the five-year mark. So, after five years, that new car will drop around 60% of its value.
How to Reduce The Rate of Your Car Devaluing?
Unfortunately, car devaluing is inevitable. But the good news is there are some steps you can take to decrease the process:
1. Keep Your Car’s Mileage Down.
According to the United States Department of Transportation Federal Highway Administration, Americans drive around 13,500 miles per year. That means more than 1,000 miles every month! Now, we don’t demand everyone to bike to work every day. But there are surely things you can do to cut down on the distances you drive. Try to knock out all your tasks in one weekly trip or carpool to work sometimes a week with a coworker. If you regularly take long, cross-country road trips, consider putting those miles on a rental car instead. All those miles saved add up!
2. Follow Your Car’s Maintenance Schedule.
From routine oil changes to tire rotations, it’s the tiny things that make a big difference when it comes to car livelihood. And staying on top of maintenance helps the car preserve its value. Not only that, but routine maintenance also enhances the safety and performance of your car while saving you thousands of dollars in repairs down the road. When in uncertainty, review your car owners manual for a servicing plan so you know when to take your car into your technician for maintenance.
3. Buy Reliable, Gently devalued Cars.
Like we suggested earlier, new cars lose their value at a much faster rate than used cars do. That’s why the very best way to buy a car is to save up and buy a reliable, lightly used car with cash. There’s a reason why the average millionaire drives a four-year-old car with 41,000 miles on it. By buying used cars, they let someone else bear the brunt of a new car’s rapid devaluation in its first few years. And they still end up with a reliable car that’ll run for years and years with proper maintenance.
Benefits of Selling Your Car For Cash
In the most generic terms, a devalued car is one that is old and has been used more than the limits. Car devaluation is a common issue that happens for every car owner. In many cases, the owner chooses to sell the car and regain some of the losses. Often, they end up in trash yards where they are exchanged for parts or put through the recycling process. Before making such decisions, however, it is important to be aware of the pros of selling your car for cash.
Indeed, selling your old car can be a very tiring, as well as a hectic process. There are several things involved that you have to take care of.
Also, there are numerous ways of selling away an old car. One of the most convenient methods is hiring a cash for cars service. That’s why it’s essential to rely on a professional car buyer like we at 1-800 WE-BUY-CARS.COM and are renowned as the professional cash for car buyers. We also guarantee 100% hassle-free services and a convenient and safe transaction.
It is possible to get a reasonably good deal for your car for New York, regardless of whether it is running or not. This is especially true if your car is not all that old, if the engine or body is still in good condition, or if it’s quite rare. No other method of selling an old car will guarantee you cash so fast and easily. The sole motive of cash for cars service is to provide you with fast cash in return for your old car.
Car in Good Use:
You can rest be assured that your old car which you have sold to us will always be put to good use, whether its parts are sold or its put through the recycling process. This is preferable than leaving your car to rust in your driveway or garage.
Fast and Convenient:
Selling your to private dealers take time and effort. There’s the task of advertising the car, meeting with potential buyers, and transferring ownership. It can take several weeks or even months to find a buyer. On the other hand, when you choose a professional car buyer they will send a team of experts to your location and they will do a proper inspection of your car. Based on that, they will prepare a report and offer you an amount. If you decide to accept their offer, they will give you the promised amount on the spot
You Only Deal With The Dealer:
If you sell your car for cash in New York, then you don’t have to worry about any process. We at 1-800 WE-BUY-CARS.COM handle the entire transaction process from start to finish. All you need to do is show up some paperwork of car and you’re one step closer to selling your car for cash at the best price. It is a good thing that in these services there is no middleman involved. So you deal directly with the service provider and there is no question of paying commissions.
1-800 WE BUY CARS Pays Top dollar cash for cars and Trucks and Suvs any vehicle every day, regardless of mileage or condition.
What’s Your Car Worth? Now call 1-800-932-8922 For instant Cash Offer, or Use onLine form or Chat and Visit 1-800 WE-BUY-CARS.COM.