Understanding Vehicle Depreciation
Anytime you buy a Toyota, you will have to consider the effects of depreciation. This is more important for buying than leasing as it directly affects the value of your investment. For those who aren’t aware, depreciation is the amount of value that your vehicle loses over time. Some experts say that your car will depreciate about 15 percent or 20 percent every year, and this is why used cars cost so much less than new ones. To make a better decision when buying your next Toyota, it helps to understand depreciation and what you can do to avoid it.
Why Depreciation Occurs
The immediate depreciation of your vehicle occurs once you have already paid licensing fees and taxes, as you will not get this money back even if you sell your Toyota back to the dealership right away. Other depreciation simply occurs due to wear and tear on the vehicle, poor condition of parts, and accumulating miles. The good news for Toyota drivers, however, is that vehicles with high demand will have higher resale values and experience less depreciation. This fact, combined with the durability of Toyotas, helps minimize their depreciation.
How to Minimize Depreciation
It is never possible to completely stop your car from depreciating, with the exception of an older classic model that will go up in value as collectors want it. You can, however, minimize depreciation through a few simple steps. If you pick a used car as opposed to a new one, you want to select an option with fewer miles. You can also minimize depreciation of a new or used car by keeping it clean and staying up to date with regular maintenance.
Now that you better understand how depreciation affects your Toyota, you are ready to talk to the team at Warrenton Toyota in Warrenton, Virginia, about your next vehicle.