If you are planning to sell your car or trade-in it, then you might be surprised to know how little everyone thinks it value. Definitely, certain things like the mileage of your car, the time of the year, and economy matters, but the reality is, there are many other things that you might not even consider that can actually affect your car’s resale value. Here, in this article, we will focus on those factors. So, let us start with the factors that affect the resale value of your car negatively. You should be aware of those.
Factors that affect the resale value of your car
Several owners- The number of owners on the car has had a significant effect on the resale value. The logic behind this factor is that the more the number of car owners there, the higher is the chances of the vehicle being used roughly. Though this is a bit subjective factor as it is not always necessary that all the owners handle the car roughly. But in maximum cases, this factor is applicable.
Aftermarket accessories- You might have spent a lot of money to pump out your ride with huge sound systems and body kits, but in the used car market, aftermarket accessories have no extra value. If anything, they can damage your car’s resale value. All these changes you would have done as per your choice. This does not mean that everyone will like it. So, for someone who is not keen on driving a flashy car with loud music, all those extra additions have a damaging effect. In order to solve this problem, most of the car owners remove all accessories and replace them with the stock parts before you sell it. Later, you can sell the accessories separately. Therefore, it is a great idea to keep the stock parts in hand if you want to sell your car in the future.
Flashy color- Again, it is a very subjective factor, but a prevalent one. Different people have different perspectives when they choose the color of their car. While some like flashy colors like green, yellow, orange, the choice of the majority won’t be similar. There are certain expectations like metallic orange time which looks great with the Tata Nexon or the lime green color looks attractive on the Chevrolet Beat. Generally, people prefer common solid colors like white, silver, or black. Therefore, if you plan to sell your car in the coming days, it would be a great option to refrain from the flashy colors.
Car’s Insurance cover- This factor is generally neglected but can have a great effect on your car’s resale value. Zero-depreciation and Comprehensive policies offer the best benefits. But generally, people here choose the lower tier policies to save their money. A buyer can surely choose better policy later, but they also consider the extra expenses and the effort that they will have to put to achieve that. So, to save money through car insurance you are directly affecting the resale value of your car.
Car’s service history-The presence of a car’s detailed service history can increase the car’s resale value. The service history makes the purchaser more confident that they are investing in a car that has been attended regularly. More than that, it also provides them with all the info on what all damage it has experienced.
Car’s condition- One of the most obvious factors that affect the resale value of your car is the condition of your car. This includes how much damage the car has, and the actual damage and the earlier repairs. How much every item of damage will lessen the value depends on the car, so while a chip in a door might lessen a costly car by thousands it might hardly impact the cost of another car. Some car valuation services can give you an idea of how much every single piece of damage will have on your final sale. In several cases, you could repair the problem for less than value reduction, not repairing it will cost you.
Brand’s image- You will come across plenty of car manufacturers selling their products. However, very few among them are associated with a hassle-free service network and cheap spare parts. Brands like Fiat and Skoda are no doubt the top car manufacturing brands and have amazing cars. Both companies are known for having terrible sales support and costly spare parts. More than being costly, they are not available easily which hinders the ownership experience. And all these factors when combined will result in a reduced price for your vehicle in the market.
Damaged Lights- One of the important factors that affect the resale value of your car is the car light. If your car’s lights have burned-out bulbs, and cracked lenses, then it is worth the effort and cost to change them. New lenses and bulbs are inexpensive and are easy to get, and you can generally swap them out by using a few screws. Non-functioning brake lights and headlights can make a car risky to drive. It is a great problem as it can impact safety. Nobody wants to purchase a used car and then immediately visit the auto shop for repair works.
Auto Mileage- The total distance traveled- kilometres or miles- is recorded on the odometer of your vehicle. That number is vital to consider as it can either increase or decrease the value of your vehicle. The lower the mileage, the more it will be worth as a second-hand vehicle in the market.
Sales channel- There are some car owners who prefer to trade in their used vehicles under a buyback policy. Such policies from manufacturers generally restrict buyback to its own models, with huge discounts on other brands. On the contrary, a direct resale to a purchaser puts the onus of antecedent check on the seller and annoyance of the transfer of papers on the purchaser. Used car dealers as well as websites provide proper documentation and take huge responsibility for all checks. Therefore, they attract large volumes of sales, which in turn results in an improved valuation of used cars.
Alterations-If you have made any kind of modifications in your car, then it will impact the car’s value. Most purchasers prefer unmodified cars so you might find that the value of your car goes down if you have done any modification. However, in a few cases, modification may even increase the value if there is a demand for modified vehicles. Even when purchasers do not mind if a car has been modified, they might be tensed about the insurance consequences of an altered car. Some insurers may refuse to insure your modified car, even if it is simple car modifications like alloy wheels.
Condition of interior and exterior part of the car- Purchasers prefer clean-looking and attractive interiors for obvious reasons. It shows how well the car was maintained by the previous owner. Though it might affect the performance of the car slightly if the flaws are small like small stains on the fabric or leather of the seats. As far as exteriors are concerned, the occurrence of scrapes and scratches may be a huge problem as it is not just a cosmetic problem, but it could cause damage to the entire body. Undoubtedly, potential purchasers will pay less amount of money as they consider their own expenses for repairs.