There are plenty of reasons why buying a new car is an attractive option. From warranties and low mileage, to cheaper insurance and better fuel efficiency, a brand new, “fresh off the production line” motor is a tempting prospect for many buyers. And you really can't beat that new car smell, can you?
But there are also many reasons why buyers opt for used cars when purchasing a vehicle – and price is typically their chief concern. New cars depreciate in value very quickly indeed. In fact, the minute you drive your shiny new motor off the forecourt, you lose 20% of what you paid in VAT alone. Over the first three years of ownership, your new car will lose around 50% of its value.
While this may sound like a very bad deal, in fact even this depreciation can be balanced out by things like greater fuel efficiency, a warranty and low mileage which make the car cheaper to run compared to an older used car over the same period. If you do your maths right, you could find that a new car is as good value, even with depreciation factored in - especially if you know how to minimise the devaluing effect.
If you're keen to minimise depreciation and get the maximum when you sell your new car, we've got a few helpful pointers:
1. Keep a full service history
Cars without a full service history can go for as much as 20% less than cars with a detailed service history. Ensure your vehicle is serviced annually and stamped by a mechanic each time. Keeping hold of invoices for any work completed will also help flesh out your history.
2. Keep your car spotless
The better the condition of your car, the more it will sell for. Take care over your car's lifespan to repair scrapes and dents ASAP, wash your vehicle regularly and ensure the interior is nice, clean and tidy to impress potential buyers.
3. Sell to the right person
While private buyers may be prepared to pay more for an older, cheaper vehicle than a dealer, franchised dealers will often be best for cars under six years old with less than 60,000 miles. Target the buyers who will give you the best price and cast your net wide to receive as many offers as possible.
Do you prefer to buy new or used cars? What is the best price you've received when selling a “new” car? Share your experience and find a great deal on motor trade insurance here at Tradex.