Unlike the majority of other assets, vehicles almost always lose their value over time. Whilst there is a standard rate at which depreciation usually occurs, there are steps you can take to ensure you get the best possible price when reselling your car.
You can get an idea of how the value of cars fluctuates depending on their condition through Prices People Pay. When searching for a car, cars with ‘average condition’ will be worth more than cars with ‘below average condition’ and less than cars with ‘above average condition’.
Do your research when buying
Whilst choosing a car that suits your lifestyle and needs is important, you should also consider the impacts of depreciation as there are certain makes and models than depreciate at a faster rate than others. There are many online resources that help you calculate the rate of your depreciation on your vehicle including Canstar.
Consider how long you want to keep the car for and at what point you might want to sell it. You can use Prices People Pay to find out what older models of the car you’re interested in are worth now and compare them to other models.
The paint colour of your vehicle can also have an impact, with more popular colours often having a higher resale value. According to a survey conducted of cars sold in the Asia Pacific by PPG Industries the 5 most popular vehicle colours (white, silver, black, natural and red) retain on average 39% of their value over time.
Regular servicing
Pay attention to the manual that comes with your car, which is where manufactures specify the intervals at which you should service your car. Generally, the guideline is to service your car every six months or every 10,000kms, whichever comes first. It’s important that you follow these guidelines and have your car serviced by a reputable mechanic at these points. You must also keep all logbooks and service history up to date, as cars that are sold without service history are worth far less than those with up to date, detailed service history.
Keep your car undercover
Protecting your car from the effects of the weather can have a significant impact on the resale value of your vehicle. Damage caused by hail and other severe weather conditions can be one of the biggest causes of serious damage to your vehicle. Most dealers or private buyers will not buy a car with hail damage at all, and it can be costly to fix.
Leaving your car in the sun for long periods of time can lead to both interior and exterior damage. Keeping your car garaged or undercover will ensure that you don’t have to pay for the effects of the weather. It will also help to keep your car clean.
Keep your car clean
When a buyer either private or a dealer is looking at buying your car, the level of cleanliness both inside and outside the car is the first factor that they’ll notice and this may well inform their decision to buy your car.
It’s a good idea when looking to sell your car to have both the interior and exterior cleaned for inspections.
Always fix minor scratches and dents
While having a minor scratch or dent might not affect the appearance of your vehicle, or the way your car drives, it is necessary to fix all damage as it occurs so as to not impact the resale value of your vehicle.
Not only can minor damage develop into far greater damage, but it can also significantly impact the resale value of your vehicle. Often the cost of fixing minor damage will be less than what you would lose if you resold the car and didn’t fix it.
Modifications
There is an assumption that adding modifications to your car always adds value, however this is not necessarily the case. Often, cars have the best resale value when they perfectly match the factory specifications of when the car was originally sold.
There are some modifications that can increase resale value such as touch screen navigation and entertainment systems and sunroofs however it is unlikely that you will recoup the cost of installing these modifications entirely when reselling your car.
