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When Cars Depreciate the Most (And How to Avoid It)

   
       

Car depreciation just means the value of your car drops over time. It happens to every car, but it does not happen evenly.

Most of the drop tends to come in a few “moments” where the car changes category in a buyer’s mind – from new car to used car, from easy to sell to harder to sell, or from low-risk to higher-risk.

If you know what those moments are, you can make smarter decisions about when selling your car makes sense, whether to keep it, and whether repairs are worth it. If you’re still unsure what yours is worth right now, start with a quick car valuation – it gives you a baseline before you overthink the timing.

The biggest depreciation moments (and why they happen)

1) The day it stops being a “new car”

The steepest drop often happens as soon as the car is registered and driven – even if it has only done a handful of miles.

That’s because buyers pay extra for “brand new”, including things like:

  • First keeper status
  • Warranty start date
  • Choice of spec and colour
  • That “unused” feeling

Once it’s registered, it’s competing with every nearly-new car out there. If you’re thinking of selling your car within the first year, you’ll usually feel this drop in the value of your car the most.

2) The first year of ownership

The early period is where a lot of the “new car premium” disappears.

Even if the car is still in great condition, it no longer has:

  • “New car” status
  • The appeal of being unregistered
  • The same buyer urgency (there’s more choice in the used car market)

What this means for you: if your car is already damaged or has started needing repairs in the first year, the numbers can stop adding up quickly.

3) Plate change periods (March and September)

In the UK, registrations spike in March and September when the new number plates arrive.

That can affect depreciation in two common ways:

  • More supply: lots of part-exchanges hit the market at the same time
  • Buyer psychology: some buyers want the newest plate, so an older plate can feel “behind” overnight

This does not mean your car becomes worthless in March or September. It just means there can be more competition, which can nudge the value of your car down when you’re selling your car.

4) When the warranty is close to ending

Many cars come with a warranty. As the end of that warranty gets closer, depreciation can feel sharper.

Why? Because buyers worry about repair bills once the safety net is gone – even if the car has been perfect so far.

You’ll often notice it in the questions people ask:

  • Any warning lights?
  • Full service history?
  • When was the clutch or timing belt done?
  • Any advisories on the last MOT?

That’s normal, but it’s also where private buyers can start getting picky, slow, or disappear if they think there’s any risk.

If you’d rather skip the back-and-forth, Cash For Cars can still make an offer even if the car isn’t perfect – including cars with warning lights, patchy history, MOT issues, or damage.

5) The first MOT

In the UK, most cars need their first MOT at three years old.

When selling your car, this can be a big psychological line for buyers:

  • Before first MOT: feels newer, lower risk
  • After first MOT: feels more “properly used”

Even if it passes with no issues, some buyers assume costs are coming soon. As a simple rule of thumb, cars often feel easiest to sell privately before they’ve built up a longer history of MOT advisories and wear-and-tear.

6) Big mileage milestones people fixate on

Mileage affects price because it signals wear – but also because people use rough thresholds when shopping.

Common “mental barriers” are around:

  • 50,000–60,000 miles
  • 80,000–100,000 miles
  • Anything that feels “high” for the car’s age

It’s not that the car suddenly gets worse at a neat number. It’s that some buyers filter searches, or set expectations, based on round figures. If your car is close to one of these milestones and you already know you’re selling soon, it can be worth thinking about timing.

7) When expensive service work is due

Depreciation often jumps when big-ticket maintenance is looming, especially if buyers think it might be overdue.

Common examples include:

  • Timing belt replacement (on some engines)
  • Tyres and brakes all round
  • Clutch and flywheel wear
  • Battery health questions on older hybrids and EVs

This is where private selling can get frustrating. Once buyers think expensive work is coming, they either hammer the price, ask you to fix things first, or go quiet.

Cash For Cars works differently: you can still get a quote and arrange collection without needing to replace tyres, do a full brake job, or spend money “just in case” to keep strangers happy.

8) After an accident or when condition slips

If you’re wondering when cars depreciate the most in real life, condition is a big part of it.

A few things can change the value quickly:

  • Accident damage (even repaired, depending on severity and paperwork)
  • Warning lights
  • Rust, dents, heavy interior wear
  • Poor-quality repairs
  • Missing service history
  • A car that does not start or won’t drive

This is where many “sell a damaged car” situations sit. It’s not just normal depreciation – it’s depreciation plus uncertainty, and buyers price that risk in.

9) When a new model comes out

When a brand launches a new shape or updated model, the older version can lose appeal faster.

That’s usually because:

  • The older shape looks dated next to the new one
  • Newer tech and safety features become the expectation
  • Buyers start searching for the “latest” version

This tends to matter most for popular models where lots of people shop by year or shape.

So when is the “best” time to sell?

There’s no perfect time for everyone. A better question is:

“When will keeping it start costing me more than it’s worth?”

It can make sense to sell sooner if:

  • It’s close to a big service bill
  • You’re about to cross a mileage milestone
  • The warranty has ended (or is about to)
  • The MOT is due and you suspect it may need work
  • It’s already damaged or unreliable
  • You cannot be bothered with private sale hassle

It can make sense to keep it longer if:

  • It’s reliable, serviced, and cheap to run
  • It has already taken the big early depreciation hit
  • You’re not planning to change cars anyway

Should I repair it before I sell?

This is a common worry. The honest answer is: sometimes yes, often no.

Repairs can be worth doing if:

  • It’s a small, cheap fix that makes the car easier to sell (like a missing mirror or a simple tyre issue)
  • It helps the car pass an MOT without advisories that scare buyers

Repairs may not be worth it if:

  • The cost is high compared with the value of your car
  • The car has multiple issues
  • It’s a non-runner or has major damage
  • You want a simple “cash for my car” solution without the time and stress

A useful way to think about it: if you spend £800 fixing a car to gain £300 in sale price, it usually doesn’t add up.

How depreciation works for damaged or non-running cars

If your car is damaged, broken, or won’t start, depreciation tends to be less about neat age milestones and more about:

  • What it will cost to repair
  • How easy parts are to source
  • How likely it is to have hidden issues
  • Whether it can be moved and collected

That’s why many people choose to sell a damaged car to a service that can collect it and handle the next steps without back-and-forth with private buyers.

FAQs

Do cars depreciate more in winter?

Sometimes. Demand can shift seasonally (for example, convertibles vs 4x4s), and people may delay big purchases around Christmas. The bigger drivers are still age, mileage, condition, and major “milestone” moments like MOTs and warranty changes.

Does mileage or age matter more?

Both matter, but in different ways:

  • Age affects perception (new vs used, MOT, warranty, tech)
  • Mileage signals wear (and triggers buyer “thresholds”)

For most everyday cars, it’s the combination that shapes the price.

Do electric cars depreciate faster?

It depends on the model and market conditions. Buyers can be more sensitive to battery health, range, and new model updates. If you’re selling an EV, condition, battery confidence and charging setup questions can matter more than the exact age.

A simple next step

If you’re not sure whether to keep your car or sell it, getting a quote can make the decision easier.

Get a free quote from Cash For Cars. If you decide to go ahead, we’ll confirm the details and arrange collection – even if your car is damaged or not running. No obligation.