7 Effective Ways to Preserve the Value of Your Car

A car is an investment that always depreciates in value over time. In fact, the moment you take delivery of your new car from the showroom, the original value of the car is gone. It is up to you to look after the car well to maintain its value. Here are 7 ways to sustain its market value:    

1.      Buy a popular model: Before you buy a car, consider looking for one of those models that are in popular demand so that when you trade-in for another car, you can fetch a better value.

2.      Regular maintenance: Timely maintenance will help keep your vehicle in good working condition. Follow the manufacturer’s recommended schedule.  Keep all the documents relating to the maintenance of your car in a safe place. When you sell your car, these can be used to show the prospective buyer that you have maintained your vehicle regularly. Fix a problem as soon as it arises. Keep the car as original as possible without adding accessories. The extra items will not provide better value for your car. 

3.      Drive with care: The more you use the car, the more it suffers from wear and tear. When you clock more mileage than normal usage, the value of the car deteriorates. Do not race the engine unnecessarily to extend its lifespan. Avoid driving in areas with poor road conditions. Do not carry more weight than is recommended in your owner's manual.

4.      Avoid the sun and the rain: Always park your car in the shade and avoid the scorching sun and the pouring rain. It is to protect the appearance of the car as long as possible.  

5.      DIY: Every Sunday I check the tire pressure and inflate it according to the manufacturer’s recommendations. It is for safety's sake because a big drop in the pressure is an indication that a nail or a sharp object has punctured your tire. Proper inflation gets you optimum performance and improves gas mileage. Wash the car often to remove dirt and dust and keep its luster. 

6.      Clean the interior: Do not eat and drink inside your car. Smoking is a no-no to avoid a foul smell. Vacuum the interior regularly and do not store things inside your care.  

7.      Avoid getting into an accident: Drive defensively, anticipate danger ahead of you. An accident will further impact its value greatly.

Are you buying a new car? Choose wisely and look after it well.  

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How Valuable is Your Car?

Recently, there was a car accident in Japan costing $3.8 million and is purported to be the most expensive car crash in the world. 

There is nothing to worry about because these car owners are rich people and these are their toys, though the cars themselves are expensive brands in the world.

The question is: How valuable is your car? 

The make of the car is not important. When you have the money you can buy a luxurious model, otherwise, a small car will do. A car is a productive tool. It is of great value to you when it serves the following purposes:

·         Taking  you to work on time

·         Getting to meetings and appointments on time

·         Taking your family out for the weekends

·         Doing your errands

·         Transporting things

·         Going for  holidays or outstation trips

·         Going out at any time

To maintain its value, not the value of the car per se, you have to:

·         Drive optimally: Accelerate slowly and shift into top gears smartly and quickly

·         Do regular maintenance including rotating your tires

·         Wash and remove brake dust and  keep the car interior clean   

·         DIY: check your  tire pressures, check your oil level

When you look after your car well, it will sustain its value and look after you without fail.

Are You Able to Buy and Maintain a Car?

Are you about to buy a car? Do you know what the expenses are when you own a car? It is not just the monthly installments, you have to think of the following monthly and yearly related expenses and factor them into your budget:

1.  Monthly installments: The more expensive the car, the more you will need to pay every month. The smaller the down payment you make, the bigger will be the amount for your monthly installments. The longer the period you finance the car, the more interest you will have to bear. The monthly installments will be a new and additional expense item in your monthly budget.   When you default on the monthly installments, your car can be repossessed because you are only a hirer of the car, the rightful owner is one of the financial institutions. Worse still, the outstanding amount may be more than the current value of the car and you still have to pay for the difference. When the amount is substantial, they may institute legal proceedings against you and make you a bankrupt.

  

2.  Petrol: Previously you use public transport. Now you have to pay more for your daily commuting to work. When your house is further away from the workplace, the more petrol you will use. In addition, the more often you drive the more petrol you will use. Petrol will cost you more than public transportation. It means you will have to allocate a bigger amount in your budget depending on the usage of your car.  

3.  Maintenance: When you have a car, you can’t be penny wise and pound foolish. Your car needs regular maintenance no matter what. It will even cost you more to repair if you wait for it to be out of order.  Regular car maintenance is another item in your budget. This is besides the replacement of worn-out tires and weak battery and not to mention other minor items like changing of fused bulbs.   

4.  Parking and toll: Previously you have nothing to do with parking and toll. Now you have to bear the expenses and looking for a parking lot is another headache for you. Please add this item to your monthly budget.

5.  Insurance and road tax: This is not a monthly expense item, but you will have to save in advance every month in 12 equal amounts so that when it is due, you will have a ready fund to renew your road tax and insurance. If you don’t, you may need to dip into your emergency fund or advance the amount from your company or get a personal loan from your buddy.

6.  Unexpected cash outflow: I know the car is new and you will drive carefully. However, you meet other drivers who are reckless and you end up with dents here and there, not to mention a major accident. Are you going to foot the bill and repair it or claim from your insurers? Don’t forget when you claim, you forego your NCB (No claim bonus).

7.  Upkeep of your car: OK, you can do it yourself to reduce expenses by not sending your car to the car spa. You still incur water plus other items to keep the luster and sparkle of your car.         

When you think of all the expenses and you are comfortable with it besides your usual living and household expenses, you can safely sign on the dotted line of the HP form and get your new car.