How Vehicle Depreciation Works and How to Minimize It

As a vehicle owner, vehicle depreciation is an unfortunate side effect that everyone faces. Luckily, there are many ways that you can limit depreciation and preserve your resale value. We're sharing how to minimize depreciation at Gillman Chevrolet GMC.

How Depreciation Works

As a vehicle ages, its monetary value continues to decline. This can be amplified by many factors, such as mileage and wear. The difference between a vehicle's original purchase price and its current resale value is known as its depreciation.

Average Depreciation Rate

Most new Chevy vehicles see their biggest drop in value in their first year. In fact, some vehicles can lose up to 20 or even 30 percent of their value in the first year alone. Then, they generally lose around eight to 12 percent each year after that, with most cars losing approximately 55 to 60 percent of their value in the first five years.

Factors That Affect Vehicle Depreciation

There are many factors that affect a vehicle's depreciation. There are some outside factors that you can't control, such as your vehicle's brand reputation, market demand, and its body style. Vehicles known for reliability often have a better resale value, as well as high-demand vehicles such as trucks, SUVS, or fuel-efficient models. There are also many other factors that can be controlled, such as your vehicle's accident and service history.

How to Minimize Depreciation

While some depreciation is unavoidable, there are steps you can take to help preserve your resale value. For starters, always keep up with your vehicle's recommended Chevy service schedule and only utilize genuine Chevy parts if you need replacement parts. Keep your vehicle protected whenever possible to help protect its exterior coat, limit rust and corrosion, and safeguard it from undue wear. You should also try to limit your driving, when possible, to keep your mileage low. Purchasing a pre-owned vehicle can help minimize depreciation, but make sure you have one with solid service history, and preferably one with minimal previous owners and one that was used for personal use.

Schedule Chevy Service in San Benito, TX

The best way that you can preserve your vehicle's value is with routine Chevy service. Our trained and certified technicians can provide the expert care you need. Visit our Chevy dealership in San Benito, TX for Chevy service today!