Model Depreciation

Hi Car Wash

We can maintain the value of a car by looking after its operation and appearance, and thereby lessen the depreciation, but the type of car also make a big difference to the ongoing values. Some cars hold their values better than others.

There was a time when large 4WD held their value; SUVs were popular. This is no longer the case. The higher cost of fuel means the vehicles are less popular, and concerns about the cars rolling under some conditions tarnished their perceived safety benefits. The one lower import duties have also changed. Larger vehicles like SUV and Cadillacs are no longer values keepers.

Any specific model of car that does not sell as well as its competitor’s is a risk. There will be some underlying reason for the poor sales, probably related to performance, and they will not keep their value for resale. Even if there is not a performance issue an unpopular car is unlikely to increase in value; exceptions are few.

Any manufacturer with financial issues will see all its various models devalue. Part of this can be explained as a real concern with replacement parts and maintenance in the future. It might also be psychological, as people don’t want to be connected to a company that is in a dubious position.

Car Wrapping Perth
Cars that are popular for fleet service, that are used for deliveries and commercial operations, tend to be less valued because there is an oversupply in the marketplace. This is a slight pity as such cars are often economical and reliable. If the fleet vehicle has used car wrapping is will also tend to keep its paintwork in better condition. But good condition is only part of the car’s perceived value.

Depreciation Time
Individuals intending to update their vehicle should be concerned with depreciation of the vehicle they intend to sell. Most of the depreciation value is lost within 5 years, especially if that exact model of car is still in production. After 10 years it makes little difference.

A good reliable car is a safer bet, but changing economics and the whims of the public are hard to predict. If you don’t need to update the car every 5 years of so it is best to go with something that suits your needs and personal taste. Otherwise, market research will help if you want to minimize depreciation.

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