PCO Driver Car Depreciation Essentials
Are you a PCO driver looking to learn the car depreciation essentials? It’s a sad fact that vehicle depreciation starts the moment you drive your new car off the forecourt. Potentially, you can lose 10% of the value of your vehicle immediately. Cars generally depreciate in value by a further 15-25% during the first year of ownership, and up to 60% over 3 years. Additionally, licensed taxis typically suffer further depreciation as the associated mileage consumption is greater than privately owned vehicles. If you’re considering buying a new vehicle you can expect swift depreciation based on a variety of additional factors. These include model, demand, reputation, and fuel type.
At Rapid Vehicle Management, we understand the risks involved in investing in a new car. We would like to offer an alternative. PCO drivers face a variety of challenges that can affect their income. The last thing you need is for your vehicle to be one of them. Here’s our quick guide to car depreciation in 2023. We offer key considerations and a smart alternative for PCO drivers looking to maximise their income.
What is Car Depreciation?
After fuel costs, depreciation is generally considered to be the second largest cost of buying a new car. Depending on the choice you make at purchase it could also turn out to be the biggest cost, with some vehicles losing a jaw-dropping 75% of their value within the first three years! While the cost of running your vehicle may vary, depreciation is a constant adverse result of ownership with every vehicle losing on average at least 10-15% per year. With even larger losses over a 3-year period expected, PCO drivers could lose thousands without even realising it!
What factors affect car depreciation?
Whether new or used there are several factors that will dictate the depreciation of your car’s potential value. Regular servicing in line with the manufacturer’s suggestions, full-service history upkeep, and careful usage and handling to avoid wear and tear would all contribute to combatting severe depreciation. Other common factors that affect depreciation include:
- Mileage: It sounds obvious, but the less you drive the more your vehicle is worth. Keeping your vehicles mileage down will keep depreciation at bay, but sadly for PCO drivers this simply isn’t an option when your vehicle is your livelihood.
- Fuel Type: Petrol, diesel, hybrid, and electric will all depreciate at different rates. As a PCO Driver, you will want the maximum amount of fuel economy available when choosing a vehicle too. A gas-guzzler would eat into your profits and allow outgoings to creep up depending upon fluctuating fuel costs.
- Consumer Demand: Market trends as well as brand reputation play a huge part in vehicle depreciation. For example, the increased popularity of SUVs, hatchbacks, and hybrid vehicles in recent years has led to a steep decline in the value of saloons. Reputation also plays a part with French and Italian cars still viewed as unreliable when compared to other countries.
- Condition/Previous Owners: As a PCO driver scuffed interiors, stained or damaged seats, as well as exterior damage caused by other road users are sadly a fact of life. Unfortunately, it is wear and tear such as this that will rapidly depreciate the value of your vehicle as well as make it unpleasant to drive. Also, the more owners a vehicle has the less it will be worth, and the higher the risk of costly repair bills in the future.
Don’t Buy, Rent an Economical PCO Alternative Today!
Don’t run the risk of vehicle depreciation, switch to a cost-effective Rapid Vehicle Management PCO rental today! Here at Rapid, we make things very simple; you look after the fuel – we look after everything else. Our PCO rentals come stuffed with pre-loaded extras that provide reliability and peace of mind as standard. The benefits for London PCO drivers include:
- Roadside assistance
- Servicing and maintenance
- Tyres and brakes replacement
As if that wasn’t enough, we offer monthly deals on desirable makes and models across our range of vehicles ensuring you always secure the best PCO rental that is right for your budget.
Call Or Click for a No Obligation Quotation and See How Much You Could Save!
Our dedicated service team is waiting now to ensure you drive away in a PCO hire car today! Our onboarding process is straightforward:
- Obtain a weekly price
- Reserve your car
- Choose to take delivery or collect your car for up to 7 days
Call 01732 747 190 or click here for more information on a depreciation-proof PCO rental package now!
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