How to Avoid the Huge Depreciation of a Performance Car

One of the major deterrents that motorists face when purchasing a performance car is the heavy depreciation that comes along with it.


Although owning your own powerful and attractive automobile is a great feeling, there will always be the thought that the car is depreciating in value as soon as you get behind the wheel and that as soon as it is time to sell, it will be for a fraction of what you originally paid.




How Bad is it?


Depreciation is the real cash burner when it comes to owning a vehicle. The drop in value will depend on a range of factors, but is usually up to 35% in the first year and 50% and higher after three years.


If you have modified your performance car or it has not been looked after, these percentages will be even higher.




Minimising Depreciation


So, how can you avoid the depreciation that a performance car comes with? You can minimise depreciation by keeping mileage down, maintaining it well and making repairs as soon as they are required, but you will still suffer a significant loss



. Buying a used automobile can help to avoid depreciation as the biggest drop occurs within the first three years, but depreciation will still be a factor and you do not get the enjoyment of driving a brand new car.




Avoiding Depreciation


The best way to completely avoid depreciation is to lease the automobile instead of purchasing it. This will see you make monthly payments over a pre-agreed period for a brand new automobile, where you simply return the keys at the end of the agreement.



You do not own the car so you do not have to be concerned about selling and the drop in value. This is a popular method as it allows motorists to drive brand new automobiles every few years and completely sidestep huge depreciation.




There will be annual mileage limits set out in the agreement and if you exceed these then you will pay a small fee per mile - this is compensation for the unexpected depreciation as it will be worth less due to the increased mileage.



Often, these limits can be negotiated along with the deposit and term agreement when you use reputable companies like Car4Leasing. Nothing burns cash quite like depreciation and especially when you own a performance car.



Whilst there are steps to minimise this drop in value, it will still be a significant loss. Leasing completely avoids depreciation and also gives you the luxury of driving brand new performance cars every few years.

- Will Hope -