Did you know that your car’s value can immediately drop by 15-20% the minute you take it out of the lot? Many buyers are shocked by the sudden drop in their car’s value. All cars depreciate, but some cars depreciate faster. While there is no way to stop depreciation completely, you can certainly slow it down by understanding how depreciation works in the UAE. By following some simple tried and tested tips put together by the experts at CarSwitch – the UAE’s first online platform for buying and selling certified used cars – you can tame the depreciation animal and save thousands of dirhams.
Depreciation is a big deal in the UAE
As a car owner in the UAE, you should be more concerned about depreciation than the cost of fuel, insurance, and maintenance. People in the UAE only hang on to their cars for around five years. To put this into perspective, motorists in the USA keep their cars for more than 11 years. Owners in the UK, Australia, Asia and Africa also use their cars for much longer. Wondering why the age at which a car is sold matters? Cars lose most of their value in the first few years, which means that the longer you keep your car, the smaller your losses.
5 tips to beat depreciation
It’s important to understand that whether you want to buy or sell car in Dubai, UAE, it is going to be a big financial decision. You will only be in a position to make a smart investment if you consider and understand the factors that drive down your car’s resale value. Remembering these 5 simple rules will get you there.
- Brands really matter: In a short period of three years, your car’s depreciation can be as low as 30-40% or has high as 50-60%, depending on the make and model of your car. To help you in making a smart decision, CarSwitch gathered data from over 2,500 sellers and shortlisted makes that retain most of their value. Check out this handy list by CarSwitch. Spoiler alert! Buying a Japanese car is the easiest and surest way to ensure good resale value.
- Old is gold: Your car’s age plays a big role in determining your car’s resale value. Cars lose around 20-25% of their value in the first year and only 15 to 20% in the subsequent years. So, buy a slightly used car or keep your car for at least 3-5 years before considering an upgrade. Use CarSwitch’s Car Valuator to easily learn the current market value of your car.
- Service history is key: Here’s your chance to prove that you’ve kept your car in an excellent condition. Most buyers will ask you to share the car’s service history. Don’t forget to keep receipts for all service appointments.
- Visual condition matters: Dubai’s hot weather and sand can wreak havoc on your car’s paint and dash. Park your car in a garage or keep it covered. You should also get your car polished regularly to maintain its luster.
- Warranty is the name of the game: Finally, what are buyers most worried about? Getting stuck with repair bills post-purchase! They would feel much more comfortable buying your car if they know that someone else will foot the repair bill (i.e. warranty). If your car’s warranty has expired, then you can get it extended for a small fee.
It’s not always easy to find used car with a good resale value. Looking for an easy way to quickly browse through a wide variety of inspected and certified used cars for sale in Dubai, UAE, including top-selling Japanese makes, and compare their features? You can do all this on CarSwitch.com with a few simple clicks. Happy shopping!