Tips To Reduce Depreciation Rate Of Your Car

author image Thursday 02 July 2015, 13:43 PM Tips And Advice

The Indian automotive industry is on the verge of paradigm shift as the owning cars is fastly becoming a necessity than a luxury. It doesn’t matter whether the car is new or used one, what matters is to have a means of communication that allows one to safely move around the town in all seasons and give your family and friends the best comfort while travelling from one place to other. Unlike last three decades, present decade saw a rapid rise in used car market sales, and if your consider year 2014 figures every new car was sold for every used car. The disposable income of Indians has also been on rapid rise which caused a rapid shift to new cars and gave rise to better quality used cars. Therefore, it wouldn’t be preposterous to say that depreciation rate of a car depends upon a number of factors.

Tips to reduce depreciation rate of your car
Tips to reduce depreciation rate of your car

The science of depreciation works in a very straight manner, the moment you buy a car whether it’s a new car or a used one, it starts losing its value and it keeps reducing at a rapid rate with the passage of time. However, auto experts suggest a few tips for reducing depreciation rate of cars. It can help in getting a good amount as and when you sell it.

  1. Significance Of Right Brand, Model and Variant: The first and best car tip for reducing depreciation rate, always start with the right model and right trim. Brand value and reliability plays a key role in this respect. For e.g. Maruti Suzuki, Hyundai, Tata, and Mahindra enjoy a top level brand value in India as compared to Nissan, Renault, and Fiat. Therefore, a considerable difference can be noticed in the used car price tags of their vehicles. The same goes for model and trims. Maruti Suzuki Swift has a much lower depreciation rate as compared to Maruti Suzuki Ertiga.

  2. Maintain Your Car: Regular servicing of car might seem quite tiring at times, but it will reward you when you put your car on sale in used car marker. A car with good service history will always have a higher selling price compared to that with none or irregular service history.

  3. Choose The Right Color: BMW is currently offering as many as 40 color options with its new cars. It might be good news for first time buyers, the case might not be the same for sellers. Everyone needs that color that stands apart from crowd and gives a special feel. Every color has a different depreciation rate per annum:

  • White- 23 per cent
  • Black – 18 per cent
  • Silver – 16 per cent
  • Grey – 13 per cent
  • Red – 10 per cent
  • Yellow/Gold – 3 per cent
  • Green – 2 per cent
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