Keep Car in Good Shape for Long-Term Payoff

The biggest single cost of car ownership is depreciation–the loss in value caused by age and wear-and-tear. The average annual depreciation is $3,392.

To reduce depreciation, aim for a high “residual value”–what your car will be worth when you sell.

Buy a car known for keeping its value. Residual value after five years can range from 56% for a Mini Cooper down to 14% for a Ford Focus. The “true cost to own” calculator at the Edmunds Web site will specify annual depreciation for any car.

Avoid trendy colors and rust-proofing, but consider buying aftermarket floor mats to protect the carpet.

To keep your car looking new:

1. Get regular oil changes, inspections, and adjustments. Rotate the tires to extend tire life. Replace belts, hoses, and other fragile items as needed. Keep maintenance records to show your buyer when you decide to sell.

2. Keep the body clean. Paint protects against the loss of residual value caused by wear-and-tear. Washing a car at home is easy and economical. Park in the shade. Spray the underside with water to remove rust-promoting build-up. On the topside, use a car cleaner, and clean the car by sections to prevent cleaner dirt from drying on the paint. Rinse with a hose, then dry the body with a rag or chamois to prevent spotting. Protect the paint with hand-applied polymer car polish. Wipe the polish on, let it dry to a haze, then rub it out with a clean rag. Make sure the product you’re using is compatible with the paint on your car.

3. Vacuum and shampoo the rugs and upholstery as necessary. Buy floor mats to protect carpets. Antioxidant products will protect the dashboard and window surrounds from sun damage.

4. Repair dings. Many body shops can fix small body dents without repainting.

Body shops and auto-glass shops can repair bull’s-eyes and other small windshield breaks. These repairs are almost invisible and far cheaper than replacement.

Start smart, carry through on your maintenance obligations, and your ex-mobile will have a higher residual value. You will reduce your overall cost of ownership.

And, when you’re ready for a new set of wheels, contact SIU Credit Union. We can put you in the driver’s seat of your new car.