CARMARTZ

Car depreciation is a budget killer. Here’s how to avoid it The average cost to own and operate a new car is ₹ 6,63,675 a year. Depreciation alone accounts for more than ₹ 1,50,000 a year. Here’s how to keep those costs down.

Considering insurance, petrol or diesel or gas plus maintenance and repairs, most drivers are well aware of how expensive cars are to buy and maintain.
In fact, the average cost to own and operate a new vehicle is ₹ 3,50,000 a year, according to an annual study, or just under 15 a km if you average 45,000 kilometres of driving a year.

However, the largest expense that comes with buying a new car largely falls under the radar, the automotive group said.
Depreciation accounts for almost 40 percent of the cost of owning a new vehicle, more than ₹ 2,00,000 per year.
New cars typically depreciate the minute you drive off the lot. By the time it’s a year old, the vehicle has lost nearly one-third of its value, according to automobile data.
The secret to minimizing depreciation costs: Keep your car for a long time and keep it well-maintained or even consider buying a quality, pre-owned vehicle.

A couple walks with a salesman, right, while shopping for a new vehicle.
For those currently car shopping, in addition to the purchase price and the rate you’ll pay to finance a car, consider the length of time you plan to own your car. By driving a pre-owned vehicle in good condition, you can keep your costs way down over that time.
That idea has already caught on. Millions of used cars were purchased in 2017, up 1.8 percent from 2016. Alternatively, new car sales ratio were are down 2 percent compared to used cars sales.

Certified pre-owned car sales, specifically, rose 1.6 percent year over year. (A certified pre-owned vehicle, usually one coming off a lease, often includes warranty coverage, which greatly reduces the worry that can also come with buying a used car.) the threat of higher prices on new cars could boost demand for used cars even more.
For this year, lakhs of used cars are expected to be bought in India up even more from last year, while new vehicle sales are expected to decline compared to sales of used car.