Understanding How Your Car's Value Changes Over Time

Age of Car: Age is one of the biggest factors of depreciation in a car. The moment you buy the car it starts to age and lose its value. As per IRDAI, your car loses 50% of its value in the first 5 years of its purchase.

Number of Kilometres Run: The more kilometres a vehicle completes, the more it depreciates. A vehicle that has travelled many miles has a comparatively more aged engine than a vehicle which has travelled fewer miles.

Brand and Model: There are many brands of cars in the Indian market. All of them boast a specific speciality in their cars. For example, TATA cars are known for their durability, while BMW is known for its engine performance. A more durable car generally has a slower depreciation over time.

Servicing and Maintenance: A car can stay with you for many years if you take good care of it. With care, we mean timely servicing and taking good measures to ensure the longevity of your car. Simply covering your car when not in use can keep it new for many years and slow down its depreciation.

Technological Advancements: Newer models of cars in the market are more technologically equipped than before. This can make your car look older than it actually is.

Accident and Damage History: Any accident history of your car is reflected in your vehicle insurance. These accidents can boost the rate of depreciation in your car insurance and can potentially reduce its life expectancy.

Demand In the Market: With advancements and changes in trends, the demand for vehicles rises and drops very frequently. Also, a lower demand in the market for your car might make your car look older.

Buy a Used or Certified Pre-Owned (CPO) Car: Buying a certified pre-owned car that is two years old will help you prevent the biggest value decline because most depreciation occurs within the first two to three years. Additionally, CPO vehicles include manufacturer-backed warranties, providing dependability without the high cost of a new automobile.

Maintain Your Vehicle Regularly: Regular maintenance is essential. In addition to ensuring your car functions smoothly, according to the suggested service plan, maintaining thorough records of all repairs and servicing increases your car's value by demonstrating to potential purchasers that it has been well-maintained.

Avoid Major Modifications: Upgraded sound systems, aftermarket wheels, or custom paint jobs may seem nice, but they may not be desirable to the typical buyer, which lowers the resale value of the car.

Drive Gently: Avoiding hard braking, speeding, and overloading are examples of gentle driving practices that assist maintain the longevity and mechanical health of your vehicle, which raises its resale value.

Protect the Exterior and Interior: Maintaining the appearance of your car over time can be achieved by utilising floor mats and seat covers, parking in shaded spots, cleaning and waxing it frequently, and using car covers.