Factors That Affect the Resale Value of Your Car

Sam Richards
Authored by Sam Richards
Posted Tuesday, November 10, 2020 - 4:31pm

According to the experts in the automotive industry, the value of your car instantly depreciates by a certain percentage as soon as you take it out of the dealership. However, this should not discourage you from purchasing a car because, in some states or countries, a car is considered a necessity. Rest assured that even if the value of your car depreciates, you will still be able to get the value of the money that you have spent on it during its service time.

Alongside this, there is a great chance that you will still be able to sell your car for a decent sum should you need to in the future. In line with this, below are some of the factors that affect the resale value of your car.

Brand

One of the major factors that affect the resale value of your car is its brand, perhaps regardless of its current condition. This is because there are certain car brands or vehicle make and models that are valued more compared to others. If you want to know whether the brand of your car is one of those that rapidly depreciates, then you can explore the internet, because in doing so, you may come across sites that will provide you with an idea of the value of your car. In this case, you can actually go here and check much your car is worth based on the brand of your vehicle. Some brands can retain up to 50% of their value, while other brands only retain up to 35% within the same time frame.

Mechanical Condition

Another major factor that can affect the resale value of your vehicle is its mechanical condition. Thus, exert the extra effort to have it serviced regularly to ensure that it is always in its tip-top condition. Otherwise, it may depreciate sooner than you expect it to do so. Make sure that you keep a record of its regular maintenance to ensure that you will have something to present to your prospective buyers in the future. In doing so, you are providing a guarantee to the next owner of your vehicle that it has been properly cared for and maintained.

Car Interior

Prospective buyers are not only concerned about the mechanical condition of your vehicle, but they will surely scrutinize its interior condition too. In this case, it can be deemed that the condition of your car interior can also affect its resale value. For instance, if your car has an unpleasant odor that doesn’t seem to go away or wear and tear is so much apparent in your seats and dashboard, then you may have a hard time getting the value that you want your car to have. Thus, make sure that you exert an extra effort to maintain your car interiors so that in the end, you will be able to get a reasonable price for your car.

Car Exterior

Just like with the interior condition of your vehicle, its exterior condition also affects its overall resale value. In this case, any visible damage to the exterior of your vehicle can already hurt its price. For instance, if your car has damaged lights such as cracked lenses, make sure that you replace them, or have any dings and dents repaired because aside from being a risk to drivers, all these can significantly reduce the price that you can put on your vehicle. You even have the option to have your car detailed to increase its value, and in the process, make sure that your old bumper stickers are removed. This is because these bumper stickers only make it difficult for potential buyers to see themselves behind the wheel of your car.

Aftermarket Accessories

If you have invested in state-of-the-art equipment for your vehicle, then there is a great chance that you will lose a significant amount of sum when you put up your car for sale later on. The reason behind this is that potential buyers may be concerned with the lucrative upkeep cost that these add-ons may need, as well as their lack of warranty after having been purchased a couple of years before. Thus, make sure to think twice about adding aftermarket accessories to your vehicle, particularly those that alter the safety equipment of your car.

Color

The color of your vehicle is another factor that greatly affects its resale value. Black, white and gray cars tend to depreciate the least, while gold vehicles tend to depreciate the most. In addition to this, eccentric colors in the body of your vehicle can also hurt the price that you can charge for it later on. While it may look good on your car, potential buyers may be wary of its high upkeep costs, discouraging them from considering purchasing your car. Thus, it is best to stick with the classic colors that will surely make it easy for you to sell your car later on, should you need to.

Your Location

Finally, the place where you live also has an impact on the resale value of your vehicle. For instance, if you live in California, where electric car models have been sold for several years, and you move to another state without adequate charging stations for electric vehicles, then you may find it difficult to sell your vehicle. In the same manner, a rear-wheel-drive that is perfect for the West Coast may be burdensome in Canada, where the likelihood of snow is high several months in a year. Thus, it can be deemed that where you live can also affect the resale value of your vehicle.

Several factors affect the resale value of your car, such as those listed above. But even if you don’t earn back the original amount that you have spent in purchasing your vehicle, the time that it has served you will already prove to be sufficient. Add to this the price that you can put on your car when it is time for you to sell it, and you have already earned the value of the money you have spent on your vehicle.

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