Does The Value of a Car Decrease With Age?
Does The Value of a Car Decrease With Age?
Posted on January 30, 2023
One of the most common questions our team at Nexcar Auto Sales & Leasing receives is "Does The Value of a Car Decrease With Age?". For this reason, our Used Car Dealership in Toronto has decided to create a guide to help address the answer to this question. The most important thing to note here is that age is only one factor when it comes to the value of a car. Other factors that play a role include depreciation, driving conditions, and service history. Let's jump into the details.
Car Depreciation
When purchasing a new vehicle, the moment that you take the car off the dealership's lot, the car will be significantly impacted by depreciation. In simple terms, depreciation is a reduction in value. It is a matter of fact that all vehicles lose value over time but new cars taken off the lot especially take a big hit. That is why most people tend to choose a used car option instead of a new one, in order to avoid paying hefty prices that are not going to bring back a return. As depreciation can increase with the age of a car, other factors like service history and driving conditions can play a role in terms of the value of a car.
Service History
Contrary to popular belief, older vehicles can still hold tons of value as long as they have a strong service history. A well-maintained vehicle on a regular basis can oftentimes increase the value of a vehicle significantly. When purchasing a used vehicle, it's always recommended that you check the service records to see how well the vehicle has been maintained over the years. When a vehicle has been cared for throughout the years, you can put more trust into it to perform for you in the future, hence - more value.
Driving Conditions
The last major factor that is worth mentioning when it comes to the value of a vehicle, is the driving conditions the vehicle has experienced in the past. Driving conditions can greatly influence the value of the vehicle because how a car is driven can be an indicator of its future working order. For example, a family car that is used to commute or drive the family around will be much more valuable than a car that is used in off-roading environments. Off-roading environments create a risk to the vehicle of severe wear and tear making this driving condition less valuable for the vehicle.
How We Can Help
If you are looking to browse used vehicles at your local used car dealership in Toronto, our team at Nexcar Auto Sales & Leasing would be happy to welcome you into our showroom. We have sales experts that can give you more information on the used vehicles you are interested in and financial experts who can show you your affordable auto loan options. Contact our team today at (416) 633-8188 to book an appointment with one of our associates.