What Affects the Rate of Depreciation?
The effect mileage has on your car depends a lot on what car you are driving. A fancy sports car with 15,000 miles on it in a year would be considered a high amount of mileage because that isn’t a car that most people drive often.
However, a mini-van with the same mileage would be considered an average amount of miles. A car with more miles than is average for its type will have a higher rate of depreciation.
Another way the make and model of your car affects depreciation is that cars in higher demand when they are new often hold their value longer than other cars. Also, cars in states with warmer weather are often in better shape than cars from cold weather states due to salt damage.
If your car is one that people consider to be more reliable, it will usually keep its value longer, too.
How to Slow the Rate of Depreciation
- Try to limit the mileage you put on your car.
- Keep up with the routine maintenance recommended by the manufacturer.
- Keep your vehicle clean – inside and out – and wax it regularly.
- Accidents will lower the value of your car.