Counting the cost of a few extras
HOW many private buyers consider the resale vale of their new car? Are those fancy extras a waste of money when you trade up?
The answer is yes and no. It depends on what you add, the make and model of car – and who you ask.
“There are plenty of misconceptions when it comes to choosing add-ons at the time of purchase – for example, many people believe a tracker system will enhance the value of a vehicle, but, in reality, while the enhanced security may reduce your insurance premium, it will not attract a higher resale price than a car without,” says Joe Pattinson, a general manager in BMW Group Financial Services.
He cautions against extensive body work, an unusual colour, engine modifications, or the car having several previous owners.
Whereas add-ons like leather seats, metallic paint and a sunroof, or panoramic glass roof, will have a significant positive impact on a car’s resale price.
Motorists who use a personal contract purchase plan will have the future minimum value agreed.
“Make sure you select the term of the plan based on how long you actually want to keep the car; don’t extend the length of the plan simply to reduce your monthly payments.
“It’s also key to remember that certain add-ons will enhance the residual value of the car – and cost you nothing. For example, if you pay extra for leather seats which cost £1,000, but enhance the car’s value by £1,000, then the rental increase is considerably less than the (equivalent) cost of the option,” says BMW’s expert.