Buying a car is one of the biggest purchases an individual can make in a lifetime, and one of the largest costs associated with a motor vehicle is depreciation. It is essential to point out that car depreciation is inevitable, whether the automobile is used or not. The way a car is used, how well it is maintained, determines the level of depreciation. Therefore, if you are thinking of reselling your car, you must understand the factors that affect its resale value. The following are 5 factors that affect the resale value of your car:
The Year of Manufacture (YOM)
The decline in value for your car is directly proportional to the car’s age. If your car’s model is two or three generations older than the current model, its price value decreases drastically. As a vehicle grows older and is used on a regular basis, depreciation effects become more noticeable. For example, the fading of the original paint job, rusting of the body, falling of electrical fixtures, just to mention but a few are clear signs of an old vehicle.
The General Condition of the Vehicle
The state of your car basically affects its resale value. If the car has noticeable signs of depreciation for example dent, broken parts, dysfunctional accessories, scratches, and rust, it will be sold for less amount of money as compared to a car that is in good condition. Your car’s resale value is not only affected by the physical appearance but also the performance and functioning of the aftermarket accessories. If you want your car to fetch more in resale value, ensure that the interior and the exterior parts of the vehicle are in good condition.
The Car’s Mileage
The mileage of a car is the total distance covered by the vehicle from the time it came out of the showroom, to the present date. This is indicated on the car’s odometer. The mileage affects the car’s resale value. A huge mileage generally means that the car has been driven quite hard, and mechanical issues are bound to occur.
Number of Owners
A car that has a single owner since it was bought from the dealership is better than a car that has gone through multiple owners. Therefore, if you own a second-hand car and you are planning to sell it again, the resale value of the car will drastically reduce. It is important to point out that every driver has a unique driving style which leaves a different effect on the vehicle. Therefore, if a car has been driven by different drivers, its performance will be negatively affected.
Mechanical Condition and Drivetrains
A vehicle’s mechanical condition especially the engine can affect the resale value of a car. The performance of the car’s engine affects its resale value. Regularly servicing your vehicle and keeping the records of the routine maintenance are essential when it comes to selling a used car. Additionally, automatic transmissions are fashionable with most used car buyers. However, this does not mean that not desirable. It depends on the buyer’s preference and where you live.
This article was contributed by Motorist Expert Anna. She is freelance blogger who works for various companies. These days she is working for We Buy Any Bike.