1. What is car depreciation?
Depreciation is the difference between what you paid for your car and what it’s worth when you sell it. Most cars lose value every year as they age and cover more miles. Understanding this helps you make better decisions when buying and selling.
2. The typical depreciation curve
Imagine a simple line chart: price on the vertical axis, time on the horizontal. The car’s value drops steeply in the first three years, then the line becomes gentler. Many new cars lose 40–60% of their value in the first three years, then slow down after that.
3. Factors that speed up depreciation
Several things cause the value line to fall more quickly:
- Very high mileage
- Poor service history
- Accident damage or write‑off status
- Unpopular colour or specification
- Frequent owners in a short time
Cars with these issues sit lower on the value chart than similar clean examples.
4. Cars that hold their value better
Some models are known for strong resale values. They may be fuel‑efficient, reliable, desirable or in short supply. On our imaginary chart, their value line sits higher and falls more slowly. Researching which models hold value can save you money long‑term.
5. How mileage affects value
Picture two lines on a chart: one for a car doing 6,000 miles per year and one doing 20,000. After five years, the high‑mileage car’s line is much lower. Keeping mileage reasonable and avoiding unnecessary journeys can help protect your investment.
6. The impact of condition and maintenance
Clean, well‑maintained cars with full history usually sit at the top of the value range. Neglected cars with dents, scuffs and missed services fall towards the bottom. Regular washing, servicing and prompt repairs keep your value line closer to the top.
7. Modifications and their effect on value
Some tasteful upgrades may add appeal, but many modifications actually reduce value. Lowered suspension, loud exhausts or non‑standard body kits can narrow your pool of buyers. On a chart, a heavily modified car’s value line may sit below that of a standard example.
8. Petrol vs diesel vs hybrid vs electric
Fuel type can change depreciation patterns. Diesel cars once held value well, but in some areas they now fall faster due to clean‑air policies. Hybrids and EVs can be strong if there is demand and good range, but outdated tech may drop sharply. Always check up‑to‑date market data.
9. How to reduce the cost of depreciation
You can’t avoid depreciation completely, but you can:
- Buy nearly‑new instead of brand‑new
- Choose models with good reliability and demand
- Keep mileage and condition sensible
- Hold on to each car slightly longer before changing
These steps flatten the depreciation curve and reduce how much you lose each year.
10. Depreciation and your valuation at SellAnyCarAberdeen
When we value your car at SellAnyCarAberdeen, we look at age, mileage, condition and market demand – all the key drivers of depreciation. We then explain clearly how these factors affect your offer. That way you can see where your car sits on the value scale and make an informed decision.