If you purchase a brand new car for $40,000 today, it could be worth less than $30,000 by 2020. Vehicles depreciate quickly and lose their resale value over time. In 2016, the average age of motor vehicles on Canadian roads stood at 9.66 years. Today, the average life expectancy of a vehicle in Canada is more than 11 years.
The increased lifespan of vehicles has a great impact on the long-term value of vehicles. Vehicles are now made of innovative materials like polymer composites, aluminum alloys, and high-strength steel. Moreover, computerized technology and significant improvements to the internal combustion engine leads to better performance and fuel economy.
While improved quality extends the life of a vehicle, you can do certain things to retain the resale value of your car. Especially when you finance your car through an auto loan program, protecting the resale value of your car becomes essential. When you preserve your vehicle, you get the most money back when you trade it in or sell it. Here is what you can do to protect the resale value of your vehicle:
Whether you want to improve the performance of your vehicle or increase its service life, regular maintenance is imperative. Your chances of getting the most value back decrease when maintenance isn’t given due attention. Regular oil changes, tune-ups, and inspection will ensure your car continues to function smoothly. In addition to the maintenance of the engine and internal parts, it’s also critical to maintain the quality of the interior. By following simple and easy steps, you can clean and maintain interior cabin, fabric, leather, and other components.
Keep vehicle maintenance records
It’s important to keep your vehicle’s maintenance records and receipts. Keeping records of oil changes, tire rotations, tune-ups and other maintenance activities will help you convince future buyers that your vehicle is well-maintained. Even keeping records of minor repair or maintenance will help you get higher resale value. If your vehicle is well-maintained but you don’t have receipts to verify your claim, it will make it difficult for you to get the best trade-in value. Always keep documents showing how much money you have invested in your car.
Adopt safe driving habits
The way you drive can also have an impact on your car’s resale value. Adopting a safe driving strategy on the road will protect your vehicle from unnecessary damage. Driving in a defensive manner can reduce the risk of your vehicle being damaged. On the other hand, aggressive and unsafe driving accelerates the depreciation process. Moreover, a vehicle that’s been in an accident has a lower resale value. Most Canadians prefer to buy a vehicle that has never been involved in a collision.
In Canada, a vehicle will have on average three different owners in its lifetime. When you finance a new car, you expect to use it for a certain period of time depending on your lifestyle and personal needs. If you want your vehicles to achieve an extended service life and don’t want to lose thousands of dollars down the road, take good care of your vehicle.
About Find My Auto
Find My Auto is a vehicle financing company based in Edmonton where Canadians can get bad credit auto loans on easy and affordable terms. Our network of dealer partners will help you get the vehicle of your choice. Contact us for more information!