We know buying a new car is an exciting event. Although it’s not something you probably want to think about when rolling off the lot, cars do depreciate instantly (up to 20%) and overtime. The good news is that there are a few things you can do to maintain the value of your car.

If you can keep your car in good condition, you can expect to fetch 10-20% higher for it if you sell it privately or trade it in for another vehicle down the line.

1. Keep Up with Maintenance and Keep Records!

You should try to adhere to the maintenance schedule in your car’s owner manual as best as possible. Even if you don’t drive often, you should still follow the maintenance schedule to ensure everything is operating properly.

It’s also important to keep records of all service and maintenance you get done on the car. This will help prove that your car was properly maintained if a purchaser ever asks. In today’s digital world, there are some great apps and programs to help you do this more easily.

Whether it’s a battery replacement, brake pads or a new transmission, you should always make note of:

• The date the repair was performed.
• The location the repair was performed.
• The cost you paid for the repair.
• The parts used to repair your car.
• Your car’s mileage when the repair was performed.

2. Try to Keep Your Mileage Low

High mileage devalues a car more than age. It’s no surprise then, that the more you drive, the less your car is worth. Even if they are immaculately maintained, a vehicle with high-mileage will always sell for less than a lower-mileage car.

If you want to avoid high depreciation, you’ll need to do your best to maintain a lower-than-average mileage lifestyle. Canadians usually drive around 20,000km or more per year, so if you can stay below that, you’re doing well. It’s easier said than done, but if you can cut your driving down to 15,000km per year, it will be worth it when it comes time to resell. Consider alternating vehicles in a carpool and use public transit if/when it’s possible.

3. Steer Clear of Aftermarket Mods

An aftermarket stereo system or skirt package might seem appealing to you, but it could actually depreciate the value of your car. It’s certainly not going to add to your car’s resale value.

We also never recommend installing any aftermarket components yourself. If you do, there is no guarantee of their quality or reliability in the eyes of a reseller, which could also reduce the car’s value.

4. Take Care if The Exterior and The Interior

In Canada, regularly maintaining your car’s exterior is essential. When the winter months roll around, our vehicles are up against the elements on a daily basis. Ice, hail, and road salt can quickly damage your car’s paint.

Get your car washed at least every two weeks – and apply a good coat of wax before winter. Many drivers don’t make a point to take care of their car’s interior. Which is all the more reason that you should. Vacuum and clean it as often as you can. You should also avoid eating food, smoking, and any other activities that could cause permanent/lingering odours.

What is the best way to value cars?

Great question! Valuing cars accurately depends on the context and purpose (buying, selling, insurance, taxation, etc.), but here are the most reliable ways to value cars:

1. Market Comparison (Comparable Sales)

• Look at prices of similar cars (same make, model, year, mileage, condition) currently for sale or recently sold in your local market.

• Websites like Kelley Blue Book (KBB), Edmunds, Autotrader, and Cars.com offer tools to check typical selling prices.

• This method reflects real-world supply and demand and regional market variations.

2. Professional Valuation Guides

• Kelley Blue Book (KBB): Popular in the US, provides trade-in value, private party value, and suggested retail value.

• NADA Guides: Often used by dealers, offers trade-in and retail pricing.

• Black Book: Commonly used by dealers and lenders for wholesale and retail valuations.

• These guides factor in depreciation, mileage, condition, and options.

3. Condition and Mileage Adjustments

• The value greatly depends on the car’s condition (excellent, good, fair, poor) and mileage.

• Maintenance history, accident records, and any modifications affect value.

• A thorough inspection and vehicle history report (e.g., Carfax) help refine value.

4. Cost Approach

• For classic or specialty cars, valuation may be based on the cost to replace or restore the vehicle.

• This method is common in insurance appraisal or when the car is rare.

5. Auction Results

• Reviewing auction sales data for similar cars (e.g., Manheim Auctions) can give a realistic wholesale market value, especially for dealers.

---

Summary:

The best way is to combine multiple methods:

• Start with a professional valuation guide for a baseline.

• Adjust using local market comparisons on listings and recent sales.

• Factor in condition, mileage, and history.

• For classic or rare cars, consider restoration costs or auction prices.