Cars depreciate the minute you drive them out the showroom, by between 15-20% on average from the minute you get behind the wheel, closer to 25-30% after a year of use, and this certainly isn’t news to car buyers. However, there are certain points in a new car that help it to retain value, and you might have seen the rankings in the top 7 value retainers.

To help UAE buyers & sellers better understand the value of used cars today, CarSwitch.com has launched a free online valuator available here. The uniqueness of this tool is it provides values for direct seller to buyer transactions, which are typically considerably higher than values a dealer might offer a seller. The one universal truth that remains unchallenged, is buying a used car goes a long way in managing the savings you invest into this asset.

The experts at CarSwitch.com have reviewed thousands of data points from real sales transactions to live listings and crowd sourced customer sentiments for hundreds of make, model and trim combinations. The reams of data unveiled numerous insights on the used car market place in the UAE as well as a couple of tips on how to avoid deep loses..

Indicative Prices

The ultimate guide to used car prices is elusive. Beyond the endless year, make, model, trim mileage, and condition combinations, the specific circumstances a UAE seller is facing at the time of sale introduces further variability to a used car price. For example, a seller that must leave the country in a few days may be forced to sell at a much lower value.  With the transient population of the UAE this happens often enough that it introduces “competition” to time insensitive sellers who price points become pressured

Depreciation

Car Valuator - comparison

Car Valuator – comparison

From a value for money stand point, buy after two years. Beyond the first two years car depreciation slows down though remains an average of 16-19% as they exit the “nearly new” status.  This could be a good time to pick up a used car as you skip the first two year stark decline. Two years after that (four years total used) depreciation rests as low as 10-12% year on year for some makes / models such as the Toyota Prado or Honda Accord, and so if you’re ok with a “more” used version this would be the best time to pick it up. However, here you need to watch out for condition! So make sure its thoroughly inspected

Best Value Cars

From a value for money stand point, buy after two years. Beyond the first two years car depreciation slows down though remains an average of 16-19% as they exit the “nearly new” status.  This could be a good time to pick up a used car as you skip the first two year stark decline. Two years after that (four years total used) depreciation rests as low as 10-12% year on year for some makes / models such as the Toyota Prado or Honda Accord, and so if you’re ok with a “more” used version this would be the best time to pick it up. However, here you need to watch out for condition! So make sure its thoroughly inspected

A few factors can help avoid steep drops in value. Premium features tend to lose their luster over time, and so opting for a car phone holder over console navigation will reduce the loss you incur on the premium paid up-front. Similarly, though to lesser extent, the premium paid for leather seats, sun-roof, blind spot monitor, etc. eventually washes away. So one could either opt for the basic version of a brand new car, or buy a two to four year used car and skip the initial harsh drops in value.

However, you need to be sure of its condition to avoid costly repairs that throw your savings back in! To that end be sure to get any used car you’re considering inspected, or surf CarSwitch.com inventory that is all directly from end sellers but pre-inspected with full reports disclosed right online

For more information on saving yourself money, read our article Make More Money

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