1 April 2019 · Motoring Tips & Advice

What Makes a Car Gain or Lose Value? | Phil Gilbert Hyundai

What Makes a Car Gain or Lose Value?

It’s a well-known fact that a car rapidly depreciates in value the moment you drive it out of the dealership. The drop-in value varies between makes and models, but is typically around 15 to 35 per cent in the first year and up to 50 per cent or more in three years. Nearly half of all new car buyers lose around $20,000 of their vehicle's value in the first four years. Meanwhile, the average resale value for used cars after four years is 44 per cent of the original purchase price.

While some depreciation is inevitable, it is possible to minimise your losses and get the highest possible price when it comes time to sell your car. Doing this is as simple as making informed decisions in the initial purchase and taking good care of the car throughout the time you own it.

What Kind of Car Is It?

The choice you make at the dealership will have a significant influence on the resale value. Selecting obscure brands, models or even paint colours is not a good approach. Models bought in large quantities by rental operators can also drastically lower the resale value of non-rental vehicles as the market is flooded by that particular vehicle.

Buying a new car at the end of its model life can also cost you a lot, especially if the next model is a marked improvement. The relative value of a type of car can vary depending on whether it’s a petrol or diesel, manual or automatic.


The most important way to protect the value of your car is to have it serviced properly. If your car doesn’t have a logbook, it’s a risk to potential buyers and will be valued accordingly. A detailed service history gives the buyer confidence that the vehicle has been looked after. Cars serviced at a dealership are also more attractive than cars serviced by independent workshops, even if they are qualified third-party providers.


The more you drive your car, the less it will be worth when you sell it. The average mileage in Australia is around 15,000km per year. If you exceed that, you can expect a higher rate of depreciation. A car that has clicked over 100,000km looks less attractive than one still in the 90s.

Certain mileage points also mean that major services are due, which can be expensive However, you shouldn’t assume that you can offload your car just before a big one to save money. Many consumers are savvy about when a major service interval will be due and will have that in mind when they are shopping for a used vehicle.

Great Used and New Car Deals in Sydney

Looking to buy a new or used Hyundai? At Phil Gilbert Hyundai, we have a wide range of new and used Hyundais at our Hyundai dealership. With two locations in Croydon and Lidcombe, we offer convenience as well as expert advice, servicing and financing. Visit our Hyundai showroom today to discover your next Hyundai car. Contact us today and call (02) 9735 8400 for more information.