Pack wisely

Safety, com­fort and tech ex­tras add a pre­mium — but can get you a bet­ter price at re­sale time

The Advertiser - Motoring - - COVER STORY - CRAIG DUFF

mak­ers are bundling ex­tra tech­nol­ogy, higher qual­ity fin­ishes and even more per­for­mance into their cars to make them more at­trac­tive.

Gen­er­ally, these bun­dles work out as cheaper than buy­ing ac­ces­sories in­di­vid­u­ally and when it comes to sell­ing, the ex­perts say, they should hold their value bet­ter.

Put sim­ply, if you spend $40,000 on a car and an­other $800 on op­tions — the av­er­age spend, ac­cord­ing to in­sid­ers — you’ll only re­trieve $400 if you sell af­ter three years.

Buy a spe­cial edi­tion and you’re likely to get a health­ier slice of your money back.

Car re­sale price mon­i­tor­ing ex­pert Ross Booth of Red­book says the laws of sup­ply and de­mand al­ways ap­ply.

“As a gen­eral rule a spe­cial edi­tion will de­pre­ci­ate at about the same level as the car it’s based on, so if it is worth two or three per cent more when you buy it, that’s what you’ll re­coup when you sell it,” he says.

“The mar­ket­ing types have a pretty good idea of what needs to be built into a spe­cial edi­tion, so they’re build­ing-in de­mand for the ve­hi­cle.”

Booth cites a Hyundai ix35 spe­cial edi­tion he bought with leather trim, big­ger wheels and a re­vers­ing cam­era for $1000 over the base price.

“That was worth­while be­cause the leather was a $1000 add-on as an ac­ces­sory. As a gen­eral rule, ac­ces­sories added in­di­vid­u­ally to a ve­hi­cle will de­pre­ci­ate around twice as quick (as the car).”

Booth says hav­ing vis­i­ble ad­di­tions on a spe­cial edi­tion is the key. “If it’s got more per­for­mance or a leather in­te­rior or what­ever the in­de­mand fea­ture is, then the next buyer can see that. (Items such as) paint and up­hol­stery pro­tec­tion can’t be seen, so aren’t worth as much.”

His views are echoed by rival Nick Adamidis of Glass’s Guide.

“There’s a big dif­fer­ence be­tween lim­ited edi­tions and spe­cial edi­tions,” Adamidis says.

“If you’re buy­ing a spe­cial edi­tion you want items the next buyer can see and ap­pre­ci­ate. If you’re adding ac­ces­sories then in terms of re­sale value, you’re of­ten bet­ter off buy­ing the next vari­ant up in the range — you’ll get a bet­ter re­turn on your money.”

Adamidis says sim­ply adding side skirts and de­cals is no longer enough to dif­fer­en­ti­ate the car come re­sale time.

“If you look at some­thing like the Nis­san X-Trail N-Sport (with metal­lic high­lights on the al­loy wheels, grille, bumpers and side skirts), it’s not go­ing to add much ex­tra value,” he says, while ac­knowl­edg­ing that peo­ple per­son­alise their cars for emo­tional rea­sons rather than fi­nan­cial ones.

Subaru brought just 400 two-door WRX STIs into Aus­tralia in 1999 and they sold be­fore they’d rolled off the boat.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.