Six car resale value factors

OWNING a car can be costly as most tend to depreciate over time and with use.

This implies that the value of your car is likely to decrease the longer you drive it.

Nonetheless, there are steps you can take to prevent its value from decreasing more than absolutely necessary.

Do your homework

The first thing that could impact the resale value of your car is doing some homework ahead of committing to a purchase, which can pay off down the line when it’s time to sell the car.

Consider the historical market demand for a vehicle; for example, is the two-door or four-door model more popular?

Is automatic preferred to manual? Diesel or petrol?

Used car websites can be extremely valuable for researching which vehicles are most popular and which have better held their value over time.

Colour

Consider exterior colour and interior trim options.

Where luminous orange and acid green may be desirable on a supercar, it may not be on a budget hatchback.

Likewise, beige cloth seats might pose a problem when it’s time to sell later, whereas black leather might be more appealing.

Keep in mind that, generally, neutral colours sell better.

Mileage

Variables such as mileage will also affect resale value.

It can be tempting to consider a bargain deal on a particular vehicle because it has high mileage.

However, this could prove a costly error down the line as the vehicle will likely require ongoing maintenance, especially if you drive it often, and it may be worth far less when you want to resell it one day.

One of the first things a dealer looks at when assessing the trade-in value is the odometer reading. If this is very high, you can expect relatively low offers.

Service intervals

It is also important to ensure the vehicle is serviced as per the manufacturer’s stipulated service intervals.

The franchised dealer must have the necessary training to keep the car in running order.

Dealers often first look at whether or not the vehicle had regular maintenance with consistent service trips.

This will reassure the dealer that the vehicle has been taken care of, and that there is a less likely risk of finding anything wrong with its inner workings.

Condition

Keeping your car clean and in tip-top shape is probably the best way of ensuring it retains value over the years.

That small scratch might not be a big deal now, but accumulating many small scratches will detract from a car’s appeal when it’s time to sell.

Do your best to keep the appearance and mechanical condition of your car as clean and neat as possible during your ownership cycle.

Aftermarket accessories

Part of the joy of owning a car is making it your own, often with personal style additions.

However, this can have an extremely negative impact on its resale value, especially when some custom add-ons are permanent.

You may see your oversized rims, outrageous body kit and major stereo system as improvements, but it’s almost guaranteed the next owner or, more importantly, the dealer you ultimately trade in with may not.

Owning and driving a car should be a fun and rewarding experience.

By being aware of the factors above and maintaining the condition of your car, the rewarding experience can last right up until the day you sell or trade it in.