Dealing with the Horrors of Depreciation

Dealing with the Horrors of Depreciation - ALD Automotive

A process by which a car’s rate loses value over time, vehicle depreciation is one of the biggest factors that can have a long-term effect on your finances; however, it is often overlooked.

What factors cause vehicle depreciation?


As websites provide more detailed information about the vehicles they are promoting, it is easier to check the quality of cars rather than making a choice based purely on personal preference. Don’t forget that a low-quality vehicle will depreciate faster and lose its value almost immediately.


Remember that anything in excess of the average yearly mileage – around 10,000 miles – means a reduction in the value of the vehicle.


Although wear and tear is unavoidable, damage to the interior/exterior of a vehicle will cause a drastic decline in its value.

Service history

As this provides evidence that you have correctly followed the manufacturer’s servicing guidelines, the service history should include receipts and stamps that prove that the vehicle has been looked after.


While the warranty duration affects the depreciation, it is important to remember that the shorter the warranty, the quicker the depreciation.

How do you reduce vehicle depreciation?

Choose your vehicle wisely

When purchasing a car, you would be well advised to buy in-demand vehicles with low running costs, such as city cars and superminis, as these options depreciate slowly.

Rather than brand new cars, you can also choose vehicles that are around one to two years old – as depreciation slows down after the initial years.

Keep service checks and Ministry of Transport certificate records

More than assuring someone that your car is in good condition, compile records on service checks, provide your Ministry of Transport certificate and submit other related documents to leave a good impression with the potential buyer – providing proof that not only were you able to follow the servicing schedule but that the vehicle also meets with the acceptable environmental and road safety standards required by law.


Sticking to a vehicle lease rather than owning a vehicle outright will take the worry out of the depreciation aspect, as not only is there a fixed monthly payment for the car, all servicing and repairs are also included.

Check on updates

Have hawk eyes, especially when you’re trying to sell your car. With the help of technology, keep yourself updated with the release dates of newly updated vehicles and make sure you sell yours beforehand.

Colour simplicity

The choice of colour varies with personal preference but if you are going to choose the perfect vehicle colour to attract buyers, the shade of your car should be less outrageous – such as black and silver, as they always retain their value in the market.

ALD Automotive understands that the weight of depreciation can be a huge concern and that’s why our trustworthy vehicle funding services will help you to secure the best possible outcomes! Phone us on +44(0) 117 908 2000 with any enquiries and we’ll gladly assist you!

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