{"id":13220,"date":"2021-07-29T09:51:00","date_gmt":"2021-07-29T09:51:00","guid":{"rendered":"https:\/\/www.dubizzle.com\/blog\/cars\/?p=13220"},"modified":"2021-11-10T09:09:34","modified_gmt":"2021-11-10T09:09:34","slug":"car-depreciation-uae","status":"publish","type":"post","link":"https:\/\/www.dubizzle.com\/blog\/cars\/car-depreciation-uae\/","title":{"rendered":"A Helpful Guide on Car Depreciation"},"content":{"rendered":"\n

The value of most commodities changes over time. It may increase in the case of some assets like land or precious metal, but it’s quite the opposite for other things like cars. Every car\u2019s value depreciates over time but the rate of depreciation depends on many factors. This guide on car value depreciation covers everything you need to know about the phenomenon, and how to lower the hit for your car. <\/p>\n\n\n\n

Why Does My Car’s Value Depreciate?<\/h2>\n\n\n\n
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A car\u2019s value keeps depreciating till you sell them \u2013 so be good to your car to get the best resale value! <\/figcaption><\/figure>\n\n\n\n

According to a survey, used car values depreciate within the first year by 20 to 30%. Several factors impact car depreciation <\/a>over time \u2013 you can control some of them, but not all of them. <\/p>\n\n\n\n

Here are a few factors that make the biggest difference. <\/p>\n\n\n\n

Condition of your car: <\/strong>If you want to sell your car or want to trade-in for your next vehicle, the condition of your vehicle matters to a great extent. <\/strong>Maintaining your car well can save your vehicle from degradation.<\/p>\n\n\n\n

If your car has proper service history, the car hasn\u2019t been in an accident, wrecks were avoided and the interior looks good, you can maintain good value. Conversely, if there is a lot of wear and tear, the car has painted dents, and there is an accident history, you\u2019ll make fewer dirhams on the resale. <\/p>\n\n\n\n

Fuel efficiency: <\/strong>Some cars chug down a massive amount of fuel. In other words, these cars are not fuel-efficient, and such cars depreciate faster than the fuel-efficient ones. <\/strong><\/p>\n\n\n\n

Cars make and body type: <\/strong>The make or brand of your car and the body type also has some impact on depreciation. A car\u2019s make and body type with higher demand in the used car market, generally have a higher resale value.  <\/p>\n\n\n\n

Mileage: <\/strong>Any car that has covered more miles will depreciate faster. Therefore, if you plan on selling your car, don\u2019t overuse it. Opt for public transport or other options for longer journeys. Even a well-maintained car will not sell for a higher price if it has covered extensive miles. <\/p>\n\n\n\n

Make and model:<\/strong> The make and model of your car also matters. Some car makes can retain most of the car\u2019s value. For instance, the depreciation rate of models with regional specs, say a Japanese make is going to be lower, thanks to the high demand for such vehicles. Therefore, if you wish to resell your car at a better price, make sure you pick up a car manufacturer and model that is always high in demand. <\/p>\n\n\n\n

Age: <\/strong>As mentioned earlier, your vehicle\u2019s age plays a vital role in the rate of car depreciation. Cars lose around 20 to 25 % in the first few years and just about 15 to 20 % in subsequent years. Therefore, buying a slightly used car or owning a car for around 3 to 5 years before going for an upgrade will slow down the process of depreciation. <\/p>\n\n\n\n

Service history: <\/strong>Well-maintained cars with an adequate service history usually have a higher resale value. Most buyers ask for proof of service history. Make sure you keep all the receipts of service appointments. The value of any car that is not in a good condition and hasn\u2019t been serviced will definitely depreciate quicker.<\/p>\n\n\n\n

Visual condition: <\/strong>The exterior and interior of your car also have a huge role to play. Always park your cars in garages or cover them, or else the UAE\u2019s hot weather damages your car’s exterior and withers its paint away. Also, keep your clean from the inside and outside. <\/strong><\/p>\n\n\n\n

Renewed car insurance: <\/strong>Any car with expired insurance will depreciate faster and result in lower resale value. No one wants to pay more for a car if they have to buy new insurance and clear fines on it.<\/p>\n\n\n\n

Always keep in mind that as a rule of thumb, the older you keep a car, the lesser you lose in value. Vehicles lose their value mostly within the first few years of purchase.  <\/p>\n\n\n\n

How Quickly Do Cars Depreciate?<\/h2>\n\n\n\n