What Are the Factors That Impact the Value of Your Car?Published Monday, March 27, 2023
Rising fuel prices, improvements in safety standards, the emphasis on emission reduction, and other factors in the automobile industry mean that buyers are scrutinizing used cars more than ever before.
Many drivers are shocked when they learn what trade-in value they should expect from their used car. With market conditions and gas prices looking increasingly uncertain, now is the time for you to think carefully before buying a new car and consider what the car's value will be in a few years.
If you are considering selling your used car and you need some assistance and advice, come to Westside Auto Car Sales and let us help you get the best deal in the market!
Key Takeaways on the Resale Value of Your Used Car
Consider these three important takeaways before new vehicles and their value when reselling them in the future:
- Many factors affect a car's value, so you will have to consider your particular vehicle and decide which ones have the greatest impact on resale value
- While personalizing a car could end up increasing its value significantly, it is one of the main factors that lower a car's value due to people having different tastes
- Popular sources of reliable information regarding your car's value include Kelley Blue Book and the National Automotive Dealers Association
Eight Factors Affecting the Trade in Value of Your Vehicle
Your new car might smell great and put like a kitten right now but the day will come when you need to upgrade to a better vehicle. When that time comes, these are the eight factors that will determine how much you get for your used car:
Popularity - Most Buyers Like a Particular Make and Model
It is surprising how in most cases, the popularity of a car has very little to do with its performance and reliability. A sports car, for example, maybe a fuel guzzler and be notoriously difficult to drive but people will still pay a fortune to have one.
These are the things you need to consider regarding the popularity of your car. Never mind that you have driven it for 15 years without a single problem. If the brand is not well-liked, better-made cars can find themselves losing out to more popular makes and models.
Age - A New Car Is Worth a Lot More!
A brand-new vehicle loses much of its resale value from the day you drive it off the sales parking lot! Except for some vintage models that gain value as the years go by, most vehicles lose out the older they get.
This means that even if your car has hardly been driven since it was purchased if it has been sitting in your garage for many years, you have been losing a lot of money. It is for this reason that no matter how great a new car is, it should never be considered an investment except if it is a rare classic or vintage model.
Poor Service History Has a Negative Impact
Some drivers are in the habit of only taking their car to the repair shop when it develops a serious problem. If you are guilty of doing this, it will come back to bite you when it comes to selling your vehicle.
Prospective buyers will want to see the car's service history and if it has huge gaps between workshop visits, this will count heavily against you in the negotiations that are a normal part of selling a used car.
Low Mileage Equals Higher Value
Common sense dictates that the more a vehicle is driven, the more wear and tear it will suffer. While this is not an exact science, especially considering how recklessly some drivers handle their new cars, it is still an important factor in determining your car's value.
A low mileage will work in your favour even in cases where the car has been around for many years. Buyers generally trust a low mileage over other factors when evaluating the condition of a used car.
Accidents Are a Blow to Car Value
No matter great a job was done repairing an accident-damaged vehicle, one that has never been involved in a car crash will have more value. If you have been able to avoid getting into accidents during the car's lifespan, an accident report will work in your favour and enable you to ask for more money for your used vehicle.
While on the topic of accidents, in most places around the world, it is an offence to mislead a buyer regarding the accident history of your vehicle in an attempt to sell your car at a higher price.
Certain Body Types Sell Quickly
Over the years, as the car industry has evolved, SUVs and similar utility vehicles have grown in popularity and now fetch top dollar in certain areas around the world. This increase in demand does not seem to be slowing down any time soon, which is great news if you own an all-wheel drive SUV that you are thinking of selling.
Before you sell your car, you might consider approaching dealers located in places where your vehicle's body type has more value. A sedan, for example, may fetch a higher price when sold in the city rather than in the countryside where the roads and environment favour more robust vehicles.
Some Colours Fetch Higher Prices
Used cars of a particular colour always seem to sell faster and at higher prices than other cars of the same make and model but with different paint jobs. The particular colour that is favoured by buyers changes with the area and what is considered fashionable in those days.
There are certain colours, such as grey, white, and black that will always be in demand while others options, such as red, yellow, and blue, may appeal to a smaller pool of customers.
One important thing to mention here is that while customizing a car has the risk of lowering its value and making it difficult to sell, with a good paint job and some patience, you can eventually sell your car for a lot more that the purchase price!
Car's Resale Value Depends on Specific Vehicle Features
Your vehicle's features play an important role in determining the type of deal you can get when selling it as a used car. Consider the following interior and exterior features:
- Power windows
- Manual transmission vs. automatic transmission (manual usually costs more)
- Leather seats
- Add-ons, such as air conditioning
These are some of the main factors that impact the value of your car when it comes to reselling it. Most buyers will consider a lack of leather seats, power windows, and air conditioning as more of a deal breaker than the vehicle's fuel consumption no matter how high the gas prices are.
Worried About Market Conditions? Let Westside Auto Car Sales Sell Your Used Car!
Factors such as your vehicle's mileage and age are very important considerations when considering the car's resale or trade-in value. However, they are far from being your vehicle's only important attributes.
If you are ready to sell your car and you want the best deal for its mileage, come to Westside Auto Car Sales for the best trade-in and resale values for used cars.