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Cars and other Vehicles

All new cars and vehicles depreciate in value once you’ve purchased them, but there are some things you can do to keep the resale value as high as possible. Same applies to boats, motorbikes, etc.

Purchase:

  • Consider a near-new vehicle – new vehicles depreciate in value by 5-10% as soon as you drive them out the show room door. So you can purchase new vehicles with very low mileage for 5-10% less than full price. While it is nice to be the sole owner when you re-sell, it doesn’t add a lot in resale value. Demonstration / test drive models may also be a good bargain.
  • Consider the resale of particular makes and models – some vehicle hold their value better than others. There are many vehicle sale websites available where you can compare resale value. Be informed and chose wisely.
  • If you are purchasing a used vehicle, do your research. Find out what the standard market value is, investigate the VIN number for theft and major accident damage, get a thorough roadworthy inspection and engine check by your own mechanic and do a reasonable test drive.
Maintenance:
  • If your vehicle is new or near new, there will probably be a schedule of routine maintenance required for warranty. Make sure you get these done by a qualified mechanic (and usually the dealer’s mechanic).
  • Even if you purchased a used vehicle, keep it well maintained. Talk to your mechanic about a schedule for servicing (based on time passed of mileage) and stick to the schedule. In particular, make sure oil and lube and tyre rotations are kept up to date.
  • Use it! Too much mileage affects resale value, but too little use affects the vehicles performance. Make sure you keep the engine ticking over at least once a week.
  • Keep the vehicle covered out of the direct sun light if possible – sun light causes a lot of damage to paintwork and soft furnishings so minimise exposure with a cover if possible.
  • Keep the vehicle washed and polished to protect the paintwork and internals, and keep that ‘loved’ look.

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We are not certified financial planners or advisors. The information in this website is general information only. Always consult a licensed financial planner before making any finance or investment decision.


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