How to beat depreciation and get the best price for your car

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We all know vehicles drop in price over time, but there are things you can do during ownership, in the run-up to selling and when negotiating with buyers to help lessen the impact of depreciation and make sure you get the maximum resale value for your car.

What is car depreciation?

Depreciation is the difference between the value of a car when you buy it and when you sell it.

Most cars will lose around 50% of their value during the first three years of ownership, but the make, model, age and mileage of a vehicle will be the main ‘features’ that affect its price point.

The good news is there are a few steps you can take to add to your motor’s desirability and the amount it’ll fetch when you come to sell it.

Keep a full service history

A car with a full service history will be worth more than one without. It might sound obvious, but a recent survey by tootle.co.uk, the online car dealer network, found 28% of respondents didn’t realise this.

Cars with no service history at all can sell for a whopping 20% less, so stick to these golden rules:

1. Get your car serviced every year, or in line with manufacturer guidelines (which can be found in your service book or the car’s onboard computer).


2. Keep a record of the service – otherwise your history will be considered only ‘partial’. Get your service book stamped by the mechanic and keep the invoice recording what work has been done.


3. If your car is still under manufacturer warranty, get the service done at a main dealer. It may be slightly more expensive, but a “full franchise history” adds value when you’re selling a newer car.

Getting your car serviced regularly doesn’t just support its resale value, it will reduce the likelihood of expensive mechanical problems during your ownership. Make sure your MOT is up to date too – as this will give buyers additional confidence that the car is problem-free.

Keep it in good condition

A used car is never going to be in mint condition. But the better nick it’s in, the more attractive it will be to buyers – and the more money you’ll be able to get for it.

1. Clean the car inside and out before trying to sell. It may sound obvious, but a neat and tidy vehicle gives a much better impression than a dirty, scruffy one. An unclean car can give buyers a broader sense that it has not been properly cared for.


2. Wash your car regularly. Certain types of ‘dirt’, such as tree sap and bird droppings, can permanently damage the paintwork if they are left for too long.


3. Repair any scrapes or dents in the bodywork sooner rather than later. Exposed metal could start to rust if it’s left too long – especially in the winter, when wet weather and road salt can accelerate the process. A touch-up pen can potentially be enough to seal small chips – find the correct paint code for your car on the build sticker under the bonnet or under the carpet in your boot. Major scratches will likely need professional attention.

There’s no guarantee you will recoup the value of cosmetic work done ahead of a sale – but it will remove the likelihood of haggling and improve your chances of an easy sale.

Find the right buyer

It doesn’t take a genius to work out that someone who really wants your car will give you the best price for it.

Whether a private punter, a dealer or a car buying service, there will be specific ‘sweet spots’ where different buyers will offer the best prices. You just need to find the right match for your particular car, so here are some things to consider:

1. Selling privately – This will, in theory, always get you the best price, and works particularly well for older, cheaper cars, where a private purchase from someone prepared to take a £1,500 punt can return far more than a dealer.
   If you’re trying to flog a more expensive motor though, you could find yourself with a limited numbers of private buyers – forking out £15,000 or more with no warranties or comeback becomes a large risk.


2. Dealer or car buyer service – If you’re selling to a dealer or a car buying service, try to find one that actually wants your car.
   If it’s no more than six years old with less than 60,000 on the clock, you’ll probably get the best price from a franchised dealer that specialises in your specific brand of car. Likewise, there will be dealers or car buying groups that specialise in particular ages, mileages or types of car.
   On the flipside, some trade buyers simply won’t want your car, either because it doesn’t suit their customer base, they already have four in stock, or they struggled to shift the last one. You’re highly unlikely to get a good offer from them – so make sure you shop around.


3. Hedging your bets – The only way to be 100% sure you’re getting the best price is by getting multiple offers. Not only will this increase your chances of finding the best buyer, but it will reassure you their offer is a fair market rate.
   And whether you’re selling or buying a vehicle, always be prepared to haggle – great negotiation skills will help you get the best value for your car, but be realistic, and understand that you’ll never sell it for as much as you would pay to buy that same car off a dealer’s forecourt.

Remember too that your car is depreciating every week, so there is a point to where ‘holding out for a better price’ could actually end up getting you less.

How to beat depreciation and get the best price for your car