There's nothing quite like driving off the dealership lot in a brand new car. Unfortunately, driving off the lot in a new car also means an inevitable and immediate drop in your shiny new car's value known as depreciation. While depreciation happens to every car, regardless of whether it's brand new or used, there are some measures you can and should take when buying brand new to protect yourself from the headaches of depreciation later on.
Do Your Research
Some cars retain their value better than others. Take time to research some of the slower depreciating makes and models currently on the market, as this can help to inform your decision. Vehicles that have a reputation for being on the road a long time and having a low annual cost of maintenance tend to be those with the best resale value, so keep this in mind. Vehicles with great fuel economy are also in high demand, which often helps them retain their value longer than those with poor fuel economy.
Opt For an Ongoing Model
While there is no means of predicting with 100% certainty that a particular make and model is going to be in production for many years to come, the fact remains that vehicles that are discontinued tend to have much higher depreciation values. With this in mind, you may want to stick with a model that is known for having been in production for many years or one that has its next model year already in development.
Take Care of It
Simply caring for your vehicle can go a long way in avoiding unnecessary depreciation of value. In addition to maintaining your vehicle with regular oil changes and other scheduled services, you should also take measures to keep your vehicle looking its best. Having it washed regularly and using wax to protect the paint from scratches and chips can go a long way here.
Consider Depreciation Coverage
In the event that your car is totaled shortly after you buy it, you'll want to make sure your insurance covers not just the depreciated value of the vehicle but the value it had before you drove it off the lot. This type of coverage is commonly referred to as GAP coverage and can help give you added peace of mind when you're buying a brand new car. From there, you can enjoy driving your shiny new vehicle and worry less about depreciation!
Take these ideas into consideration as you look for new cars for sale in your area.