If you plan to sell your car or trade it in when you buy a new vehicle, its resale value will be a big factor in how much money you can get for it.
That being said, take note that the value of your car changes and drops from the moment it is bought. The depreciation will continue with each passing year. Your car will physically deteriorate due to wear and tear in use over time.
In brief, there are some key areas that are checked as the main factors affecting a used vehicle’s price.
Read on as we share what are the factors that affect a car’s resale value.
Factors That Affect Car Value
There are four main things that are usually considered when determining a vehicle’s price. As such, modifications, mileage, maintenance, and condition of the car.
Modification
If you wish to aim for a higher resale value for your car then you should probably think twice about planning your mods.
While many do it as an extension of the car, doing so could affect its resale value. Whether it is stickers or wraps, or a simple rim change, all these influences the value of the vehicle.
A small mod may be considered acceptable by some, but something bigger could be a put-off. It would end up cost you, either by having to accept a lower valuation for your car or having to spend even more to revert the car back to its stock specification.
Mileage
A car with high mileage appears to be less attractive than a car with low mileage. High mileage means it has been used through and through.
Though your car may be in mint condition, this does not necessarily guarantee a good resale value if your car has traveled more than 200,000km for example.
Condition of the car (interior & exterior)
Every scratch and dent on your car gives your buyers more reason to reduce the price by hundreds if not thousands.
This applies to the interior too. Bad odour or small stains on fabric seat for example. This gives prospective buyers a chance to pick on these flaws to bring the price down.
Maintenance record
Cars are never easy to maintain. It is advisable to keep your maintenance records and papers until the end.
These records help you to prove that it has been serviced according to the schedules required; ensuring its good upkeep.
Your potential buyer will definitely want to look into your vehicle’s service history. A clean record plays a great deal in your favour when it comes to price negotiations.
How to improve your car value
Before you sell your car, it’s important to consider what can be done to increase your car’s resale value. Here are several things that you can do to improve your car’s resale value.
Keep the mileage down
Mileage is really the first thing a car’s value depends on. Your car might look astonishingly new, but the price will mostly be determined by how many miles it has traveled.
A high mileage indicates a car has been through a lot of wear and tear. Usually, your car resale value may drop considerably once it exceeds 100,000 kilometers although it is newly minted.
If you’re thinking about selling your vehicle in few years, you might want to reconsider driving your car to avoid any unnecessary mileage. It is best to do it around the 80,000 to 90,000-kilometer mark.
Regular maintenance
The next best way to preserve the resale value of your car is by getting under the hood regularly. Also, it’s one of the easiest things to do on this list. All you need to do is follow the manufacturer’s scheduled maintenance and ensure that it is done at authorized service centers.
Taking proper care of your car will help avoid unnecessary repairs and save you money in the long run. Moreover, buyers are more than willing to offer extra money for a car with a well-maintained history.
Modify moderately
Mass customizations will cause future buyers to look the other way so try to keep it as close to stock as possible.
Car modifications such as giant rims, turbo kits, or high-end stereos may lower the resale value of your car in the future.
If you insist on sprucing up your car, you may try to modify it with accessories that add value and can be useful in the long run. As such, modern infotainment system or proper window tints.
Keep the interior and exterior clean
A clean-looking car is a valuable car. Usually, potential buyers will keep their eyes on the exterior first and decide on the price offer based on how clean it looks.
A regular wash and coating will do wonders for your car in the long run. It will help to preserve the color of your car, remove blemishes, and prevent fading as well.
It is just as important to keep the interior of your car clean too. A well-kept interior will appeal to buyers more.
Regularly vacuuming the interior will help keep everything clean, while using proper cleaners will maintain the look of interior plastics as well as leather. Investing in air fresheners will also do wonders for your car.
Drive safely
Proper driving habits will keep your car in good working condition and therefore, maintain its resale value.
This can also reduce the amount of maintenance on components like the brakes and tires in the long run. Other than that, safe driving also helps to prevent an accident from happening.
It may be hard to avoid an occasional dent or scratch in its lifetime, however, try to keep these down to a minimum.
Proper care is vital to improve your resale car value
Your car will inevitably lose value over time, but there are some ways that you can improve its resale value.
Never underestimate the importance of taking care of your car as it can contribute to a higher sale price when you sell it.
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