5 things that you are doing that can cause your car to depreciate quickly

Last updated on June 6th, 2023
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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1. The colour of your car

The way your car looks has a huge impact on whether it will be able to resell or not. However, if you are planning to own the car until the engine packs up, you may not need to worry about such things. The colour of your car and its trim can affect your cars depreciation price. Standard colours such as; white, silver, grey, or black are popular car colours that have a higher resale value on the used market. Painting your car an unusual colour you may have fewer people interested in purchasing your car.

2. Not keeping to a maintenance schedule

Skipping your car's maintenance can have far reaching consequences. It may seem like a tedious thing to do to constantly check your oil and stick to the car's maintenance schedule, but this could literally save you hundreds if not thousands of dollars off of car depreciation. A car that is not well maintained can have problems in future which may deter future buyers. Taking care of your car by keeping the manufacturer’s maintenance schedule can be a good investment for you and your car. Make sure that you clean the exterior and interior to keep it in good condition.

3. Running up the odometer numbers

High numbers on a cars’ odometer is not a good look and can speed up the depreciation of your car. If you drive your car to and from work, it can be hard to avoid running up the odometer numbers. With the average motorists travelling 15,530 Km per year, having a car that has odometers running below these numbers can be attractive for potential car buyers. However, you could keep the numbers low by planning your trips and avoid driving to places that you could probably walk to.

4. Making non-standard modifications

There is nothing wrong with modifying your car to your specific taste and style, but if you are planning to get insurance or even sell your car this could be a problem. What appeals to you may not necessarily appeal to the next owner who may be interested in your car. It is important to research how the modifications you are interested in will impact your cars resale value. Also, check if the modifications will not tamper with your manufacturer’s warranty.

5. Choosing the wrong brand

If you are not planning to hold onto your car for long, it is vital to research which car brand has the highest resale value in the Australian used car market. By doing so it could be possible to retain some of the value of your car when it comes to selling it.

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

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