Buying a car is a significant investment, and one that you might pay off slowly over time. When the time comes to trade in your old car for a new one, you’ll want to make sure that you get the highest price for it.
Although cars lose their value over time, you can mitigate this by taking good care of your vehicle. However, one of the first ways to get the best resale value is to choose a car that’s known for its low rate of depreciation. Popular vehicles from reliable brands tend to fare better over time, but most new cars will lose approximately one third of their value in their first year of life. To protect your investment, you’ll want to research your options carefully.
Factors Affecting Resale Value
Some brands hold their value better than others. You can read a car news website to find out about cars with good records of depreciation, or look for resale information in car reviews. However there are additional factors beyond a brand’s reputation or history of low depreciation rates. One factor that can influence your car’s resale value is the demand in your particular area. In urban areas, smaller and more fuel-efficient city cars tend to hold their value well. On the other hand, if you read a review of Ford Territory by Motoring or other SUV reviews you might notice that they are in high demand in rural areas. A region’s climate will also influence resale values. You’ll find it easier to sell a convertible at a higher price in a summery climate, while cars with four-wheel drive will be in high demand in wet or wintry areas.
Although it’s fun to choose a gimmicky car with trendy colours, this could negatively impact the car’s resale value in a few years’ time. You don’t want to have a car on your hands that seems too dated, because you’ll probably lose money when the time comes to sell it. The same holds true for technology and upgrades. What seems like the height of technology at the time can become old-fashioned and dated in five years. This is worth taking into consideration before you drop money on expensive add-ons to your vehicle, thinking it will increase its resale value. Classic upgrades like leather seats or sunroofs tend to fare better over time, rather than a new stereo system.
Choose the Right Time to Sell
If you can stand to wait, it’s worth taking your time and watching the market before selling your car. You can stay up to date with the market by monitoring used car sales sites and reading the latest car news. It’s better to sell your SUV when fuel prices are at a low point rather than when they’re at record highs, for example. If you plan on trading in your car at a dealership, you’ll want to visit them when it’s quiet and not too busy. This will increase your chances of negotiating a good deal.
Keeping your Car in Prime Condition
To ensure that you’re able to sell your car for its maximum resale value, you’ll need to take good care of it over the years. This means taking it in for regular servicing, and keeping a paper record of any work that’s completed. If you are selling your car to a private buyer, they’ll most likely want to see this paper trail. A clean, well-kept car will be an attractive option with a higher perceived value.
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