Your vehicle’s condition is tied to your success when selling your car. The price tag on new vehicles is drastically high, which means used cars are in demand. However, factors like mileage, age, condition, location, color, make, and model can impact your car’s resale value, which can create a dent in the final cheque. Here’s how to preserve your car’s worth and prevent external factors from impacting your car’s resale value.
Essential Factors That Affect A Used Car’s Resale Value
Cars naturally depreciate the moment you drive them off the lot. You can maintain your car’s value with simple maintenance and limiting factors, like modifications that decrease the vehicle’s appeal. Here’s a breakdown of common factors that influence your car’s resale value.
1. Mileage
Every mile matters. The main factor impacting your used car’s resale value is its mileage. A higher mileage often spells future repairs, while a car with a lower mileage is a plus point on which many buyers seal the deal. Consider regular maintenance to keep your vehicle looking fresh, or sell it to your local dealership that buys problematic cars without considering the resale value.
2. Age
Age is not just a number when evaluating your car’s resale value. How old your car is reflects its internal working condition and what gives buyers an idea of what to expect down the road. Due to technological features in new cars, some buyers may choose one that’s not weighed down by age or outdated features.
3. Condition
Every used car will tell a story, but it doesn’t always have to show. The condition of your car is more than its appearance. In fact, it reflects how much care and attention you’ve invested in your car.
However, this factor is subjective for most buyers, while some may pay the top dollar for a used car that comes with a low-milage and its original parts, even if there are some scratches on the surface. Others may focus on its outward appearance, looking to invest in the appeal of a new purchase.
4. Location
Besides condition and mileage, some factors, like location, play a part in impacting the resale value of your car. If you live in a high-traffic area with bad weather, your vehicle will display signs of wear and tear than a car in a less trafficked area with good weather conditions. Sometimes, the location is often the driving force behind the resale value of a vehicle. For instance, in rural areas, you may have to settle for less due to a lack of potential buyers compared to in urban areas where competition is high.
Besides location, the vehicle in question also plays a part in how high you can price your car. Family sedans are popular everywhere, but certain cars fare well in specialized areas. Luxury convertibles and sports cars do better along the coasts and areas with warm climates, while four-wheel-drive trucks and SUVs thrive in areas that get a lot of snow.
5. Accidents
There’s no greater damage to the value of your car than an accident. Cars tend to depreciate naturally, but an accident can speed up the depreciation process. A reported accident, no matter how big or small, has long-term consequences on the value of your car, making it difficult to sell even after repairs.
Buyers avoid cars with an accident history, fearing they might have a car with structural defects on their hands. It’s best to drive safely and drive slow to maintain the resale value of your car. If you’re out of options and the future looks bleak, you can always sell your car to a dealership to get your car’s worth.
6. Make And Model
A car’s make and model help determine its functionality, performance, and more. Specific models from popular automobile manufacturers retain their resale value due to high demands in the market.
However, some luxury models with advanced features indicate costly repairs, which may deter buyers. Every buyer is different, with their own preferences and priorities when buying a car. It’s important to advertise your car with a particular audience in mind.
7. Personal Modifications
Personalizing your car can hurt its resale value. Whether you’re changing the seats or making technical improvements to enhance performance, modifications are a common hit or miss with buyers. Some buyers opt for a car in its original condition and parts; any auto modifications can decrease its appeal to certain buyers.
Even if you’re careful with modifications, you may accidentally lower your car’s resale value. Automatic safety features or keyless locks are considered good upgrades that enhance the overall value of your car. However, it’s generally recommended to avoid complex modifications which can create a void in the warranty.
8. Existing Features
Every car comes with its own unique features that help it stand out from the crowd. So, if you have a car with a sunroof, adaptive headlights, parking sensors, or specific technical features, it may help preserve its resale value.
9. Maintenance History
Your maintenance history will tell a buyer a lot about your vehicle. The records and receipts will show how much you’ve invested to maintain the resale value of your vehicle. Potential buyers thoroughly inspect the working condition of used cars, check the records and engine, and often opt for an on-site inspection from a professional. It’s always a good idea to follow a strict maintenance regime to preserve the resale value of your used car.
10. Number Of Owners
The number of owners significantly impacts the value of a car. A vehicle with only one owner will sell at a higher price on the market compared to one with multiple owners, as it shows fewer signs of wear and tear and usually doesn’t have a high mileage.
11. Market Conditions
You can’t control everything to maintain your car’s worth. External factors like climate and market conditions extend beyond your control and irreversibly impact your vehicle’s resale value. Some models tend to depreciate slower than others. However, if the market is filled with similar models, you’ll have to settle for a lower price. Alternatively, if your vehicle has a similar body and design as newer models, you can get a higher resale value.
Tips to Preserve Your Car’s Resale Value
Maintaining your car is key to keeping it in top shape in the long run and ensuring its resale value. Here are some common ways to preserve your car’s resale value:
1. Routine Maintenance:
The best way to retain the value of your car is to follow the manufacturer’s recommended maintenance instructions, including oil and filter changes. Follow a strict maintenance regime to address any potential issues down the road.
If you plan to sell your car in the future, compile all maintenance records, no matter how minor. This way, you can show how well you took care of the car during your possession, gaining the trust of potential buyers.
2. Avoid Accidents
To extend the lifespan of your car and ensure its resale value, drive safely. A minor accident can significantly decline the value of your vehicle, leading to extensive repairs and answering questions from buyers. Repair all dents and dings before selling your car privately, or a better alternative would be to sell your car to a dealership that buys cars.
3. Avoid Personalization
Some modifications are encouraged, others not so much. However, a custom paint job or high stereo speakers may deter some buyers from buying your car. It’s best to do your research before making any changes so you don’t accidentally devalue your ride.
4. Take Care Of The Mileage
If you want to sell your car in the future, follow a strict path to maintain its mileage. Avoid taking long commutes and rent a car for trips to maintain your car’s mileage and preserve its resale value.
How To Get The Most For Your Used Car
Maintaining your car’s resale value can be a challenge. Over the years, your ride may show signs of wear and tear and exhibit signs of much-needed repairs, encouraging the need for a change. Here at Villages Car Buyers, we work to help you make the shift by buying your car and helping you get your car’s worth. Or you can browse through our inventory and consider trading in your car for your next ride. We work to be what you need throughout your car journey.
