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If there’s one thing to be sceptical about buying a brand new car, it’s depreciation. Generally, a car loses half of its value after the five years of ownership. Even if your car doesn’t have much wear and tear, depreciation is still inevitable. Whether you decide to sell your car in the future or keep it until the wheels fall off, there are still ways for you to increase the value of your car.
First, how do you determine the value of your car?
The value of your car depends on a number of factors such as:
The more popular the car is, the higher the value it commands. Cars that have advantage on height, cargo space and seating position usually are the ones with higher resale value compared to others.
Some of today’s cars aren’t like wine that gets better with age. If your car has driven miles higher than the average per year, it’s more likely to reduce the value due to wear and tear. A six-figure mileage even for an expensive car becomes less appealing for car buyers who are looking for an outstanding purchase.
When putting your car on sale, it will be assessed and classified into three conditions – excellent, fair and poor. An excellent condition guarantees a money back but it’s not always easy to come by.
Higher trims, safety features as well infotainment aren’t just bells and whistles that cost you hundreds or thousands of dollars but are also likely investments. They will help you retain the value of your car even if it’s already used.
Considering all these factors, how do you increase the value of your car then? It’s not going to be walk in the park but rather a climb in the mountain. Depreciation is such a heavy word and to defeat it, you have to invest in a valuable amount of time, money and effort.
From knowing which car to buy to proper maintenance and servicing, the process of increasing the value of your car can be challenging especially if you are unprepared.
To guide you with the process, we have a list of tips that will help improve your car’s selling potential:
The best way to ensure a high value in your car is to buy the brands with best resale value such as Toyota. Ranked as one of the best car brands for resale and retained value in 2019, Toyota has it all when it comes to quality, reliability and durability. There are also other car players in the category – Subaru, Porsche, Lexus, Jeep and Ram, to choose from. Investing in these brands means lower ownership costs for you and more importantly, getting the best possible return on your car.
Not all cars are built equal and so is the cost of routine maintenance. When you buy a reliable car outright, you will less likely spend fewer dollars on maintenance and repair but that is not always the case. How you drive and use your car will also determine your car’s need for maintenance such as oil and filter changes. The more you drive your car, the higher the chance it will be subjected to check up, repair and servicing. Remember that every rumble and rattle your car makes is a loss point in trying to increase your car’s value.
Good tires take you to great places but having properly inflated tires help your car retain its value. Other than that, it also improves your gas mileage, which is a plus point for your car. Tires have direct contact on the road and so they are subjected to wear and tear. To avoid the unnecessary wear, check the condition of your tires frequently. Rotate, balance and align them whenever needed and you might also need to invest on new ones if they’re already looking thin and bald. It’s an additional expense on your part but it can help you get a higher value for your car once you decide to sell it.
Keeping your brakes in pristine condition helps your car rank in the excellent category. When it’s time to replace your brake pads, opt for good quality pads that deliver a better performance and last longer. You can have a local mechanic do the work for you or you can simply do it on your own if you have the pipes and skills. Either way, having your brake pads replaced will definitely look good on your car when it’s selling time.
You don’t always have to send your car to a servicing centre; there are lots of car maintenance and repair that you can do on your own to help you save money such as the following:
Just remember to take precautionary measures and always refer to your car’s manual and manufacturer’s recommendations.
Selling your car with cracked windshield decreases the value of your car. Note that in some states it’s actually illegal to drive with a cracked windshield. For that reason alone, if your car has crack, whether big or small, you have to have it fixed or you could be losing value on your car.
Who would pay for a car that’s treated like a dump anyway? Keeping your car looking brand new will make it highly valuable even if it has already accumulated some miles. A clean car inside and out with polished exteriors, and shiny black tires signifies a valuable car that pays good money in return.
Receipts from maintenance, servicing, or repair can serve as your bargaining power to prove that your car is properly maintained. A good documentation or record of your routine maintenance will also help in showing your car is in great condition. Every work that was done on your car should be well documented including the date to establish transparency. When it’s time to put it on sale, you can sell it easier on a value your car deserves.
Car safety features like automatic emergency braking and forward collision warning systems, automatic high beams, and rear cross traffic warnings may be expensive at first, but these add-ons are of high importance in keeping yourself and family safe whenever you’re on the road. Your invested money will eventually pay off when you finally decide to put your car on sale as they add value on safety and security of your car.
Depreciation is scary but it doesn’t have to stop you from buying a new car. Know which car you truly want, do your research and once you have your new car, treat it like it’s family. Give it the love and care it deserves and never settle for less.
Planning on putting your car up on the market? We can help! Visit us at www.motormatcher.com.au for listing.