Determining what’s the best course of action when dealing with vehicles that are at the end of its lifetime, we must do whatever it takes to retain as much value. Many factors play a role when looking at a used vehicle’s value at the end of its assumed useful lifetime. Throughout this article, we want to give you the ComVan advantage when it comes to retaining your vehicle’s value. For example, If we use the Canadian Red Book, which has many wholesale and retail values of used vehicles, we can find industry standard prices for all vehicles sold within Canada. According to Ontario.ca, “The values are based on the average amounts paid for vehicles of the same year, make and model. These values do not factor in major areas like:
- Optional Equipment
- Vehicle Condition
These major areas can make a huge impact on whether you will retain the industry standard average of what your vehicle is worth.
Car depreciation is the rate at which vehicles lose value over time. While all vehicles depreciate at a different rate, the value loss varies among all vehicles. When looking at new vehicle depreciation, during the first year, your vehicle will depreciate about 20-30% and 15-25% per year after – which comes to a 60% average loss by the fifth year. If we take a Ford Transit van, the value to own one of these vehicles is displayed below:
- Cargo van T-150: $36,005 = $14,402 after 5 years
- Passenger wagon T-150: $41,675 = $16,670 after 5 years
- Crew van T-150: $38,215 = $15,286 after 5 years
This doesn’t factor in Optional Equipment, Vehicle Condition and mileage. With these major areas still being a big part in how much your vehicle is worth at the end of its useful life for you, you must take action to counteract the many forces that play a part in how much your work on wheels is worth at the end of its useful life. With deprecation being so high, you must do whatever it takes to mitigate this force at all costs.
Furthermore, vehicle conditions can be very subjective to many. Focusing on this factor is major because we can control the environment inside our vehicles. Many workers overlook interior vehicle protection when upfitting their work vans. After a long day’s work, we have all made minor mistakes that lead to bigger problems in the future. For example, if you were to accidentally graze or cut a hole in your cargo van’s interior wall, this can lead to rusting and can make for a nightmare when getting it fixed.
In terms of condition categories, your vehicle will either be labeled as an excellent, good, fair or poor condition when the value is being determined. Excellent vehicle condition is very hard to come by – According to Kelley Blue Book, “less than 5% of all used vehicles fall into this category.” This just goes to show that many overlook how imperative it is to maintain vehicle condition, which leads to higher resale value.
Our solution to this issue would be to utilize our vehicle protection. Our wall, flooring and seating protection are the perfect solutions to eliminating or reducing the amount of damage done within your cargo van. Below displays some options to keep your vehicle conditions optimal while working in the field.
At the end of the day, as a fleet owner or independent contractor, you must make small decisions to save money in the future. You suffer the upfront cost of buying vehicle protection, but the vehicle protection will pay for itself when your vehicle is worth thousands more due to taking the initiative at the very beginning.
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- Vehicle ProtectionDetermining what’s the best course of action when dealing with vehicles that are at the end of its lifetime, we must do whatever it takes to retain as much value. Many factors play a role when looking at a used vehicle’s value at the end of its assumed useful lifetime.
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