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Car Depreciation 101 | What to know when selling your car

Car Depreciation 101 | What to know when selling your car

Selling your car or simply curious about how car values fluctuate over time? We’re breaking down everything you need to know about vehicle depreciation. 

Knowing that a new car depreciates the minute you drive it off the showroom floor can be disheartening. Even if you changed your mind the day after making the purchase, you would still be looking at an initial depreciation of thousands of rands, with the vehicle now only worth the wholesale value. 

Depreciation is inevitable. There are, however, several factors that could slow down the depreciation value of your car, namely; maintenance, model and mileage. Of course, some cars will always be more sought after than others and therefore retain a higher value throughout their lifetime. 

Factors influencing the rate of depreciation

You always want to sell your car for more. Determining its actual worth based on depreciation will give you some bargaining power and help you make an informed decision when selling your car. 

Factors influencing depreciation rate when selling a used car

Whether you’re buying or selling a car, it’s important to know what the realistic market value is and what affects that value. 

How depreciation affects your car’s value

In the automotive industry, car depreciation is not linear but typically follows a depreciation curve. In the first few years, the depreciation rate is rapid and is then followed by a slower decline in value over time. 

These two graphs indicate rates of depreciation based on several variables. Both reach the same point over 10 years but with a different depreciation path in getting there.

car deprecation over 10 years
Graph - car depreciation over 10 years

All these factors will directly affect a vehicle’s financial implications in the long run and should be taken into consideration when buying or selling a car. 

Investing in add-ons – are they worth it?

The effect of modifications on depreciation depends on various factors, including the type of modification, the quality of the workmanship, the car’s make and model, and the preferences of potential buyers.

Some add-ons – safety features, infotainment systems and aesthetic enhancements – can potentially increase your vehicle’s value, but they seldom make an appreciable difference to the realizable value when it comes to selling your car.  

How car modifications affect depreciation rates

You can calculate the potential ROI (return in investment) or you can read our blog where we discuss the do’s and don’ts of car modifications to ensure you sell your car for more.

But here’s the general gist when it comes to modifications and depreciation:

Be Weelee sure

Selling your car for more is always going to be dependent on a host of variables; many beyond your control. And although the inevitability of depreciation plays a role, so does the market. There is also seldom a time when all the stars align before selling a car. (And sometimes you need the best price you can get right now).

But one thing you can be sure of is Weelee. It is ALWAYS worth getting a second opinion from us to ensure you get the best deal when you are ready to sell. 

Sell your car today with Weelee and join 50000 happy customers.
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