New cars can be pricey, this is something that most people know. This is why it is so common for people to first want to sell their car or trade it in before purchasing a new one. Generally, whether you’re selling your car privately or trading it in at your local dealer, you will want to know your car’s value to get your full money’s worth. If you ask for too much, you’ll never get it off your hands. Asking too little means simply missing out on money! So, whether you are selling privately or at a dealership, you can be confident you are getting the best possible price with these five main factors that affect your car’s resale value
1. Condition of your vehicle
As you may expect, your car’s overall condition will greatly affect the price. Essentially, the better care you have taken of your vehicle while you’ve owned it, the more money you may be eligible for. Think of it like selling a home; to better your chances of a sale, it requires a good clean-up, well-placed items, and possible staging to look its best. A car’s version of this may be some new mats, deep detailing, any glass/crack repairs, and an air freshener!
Many different factors will affect the condition of your vehicle, such as dull paint, scratches/dents in the paint, and broken or chipped windows. Other factors include rust, scratched rims, and worn-down tires. The interior plays a big part as well. If your seats are stained and dirty, and your floors are covered in salt, there is a large chance you won’t get as much for it. If you smoke in the car, the smell that lingers in the fabric of your seats and interiors can also play a factor. All of these make your car less appealing to potential buyers and, therefore less valuable.
2. Car maintenance
You will also want to make sure you maintain your vehicle often, such as changing the oil on time and taking maintenance measures that may have been recommended by manufacturers. If you have ever been in an accident with a car, the value typically decreases based on the car’s history. Being in an accident may cause potential buyers to be reserved, even if the vehicle was properly fixed afterward.
3. Mileage and age affect your car’s resale value
Another factor that contributes to your car’s resale value is the mileage and age of your vehicle. Like many things, cars will depreciate over time. Cars depreciate the minute you drive them off the lot. The older a car gets, the lower its value will become but, of course, there are exceptions to this. They can drop by 20-30% in the first year and 60% or more of the original price after five years. These exceptions include classic or collectible vehicles.
When a vehicle is old, it will likely have high mileage. The mileage on a vehicle’s odometer is generally one of the first things a buyer will inquire about when purchasing a used vehicle. Unfortunately, the more mileage on the odometer, the less the vehicle will be worth.
4. Fuel type of the vehicle
The type of fuel your car runs on, and whether it’s a hybrid or electric, will also affect the pricing. When fuel prices rise, so does the demand for fuel efficiency in vehicles. In turn, this will also affect the price of the vehicle. Today, there is a rise in the popularity of electric vehicles due to gas prices and economic concerns. As a result, the price of used electric vehicles is likely higher than previously. At the same time, when global fuel prices drop, people will be more willing to spend their money on vehicles that guzzle gas more quickly. Thus, the demand for larger cars with bigger engines, more horsepower, and passenger/cargo space will increase.
5. Demand affects your car’s resale value
Let’s face it, some vehicles are more in demand than others. As you may expect, this will make them more valuable. When a popular make or model is “trendy” or popular, you expect to get more money for it. At the same time, if it’s a vehicle that’s more common or highly stolen, it will likely drive down the resale value price. At the same time, it might make selling the car more difficult as there may be multiple others on the market.
In recent years, the value of many vehicles has spiked as both new and used vehicle prices have plummeted. This is potentially due to global supply chain issues. This example perfectly encapsulates how supply and demand will affect the prices of your used vehicle.
6. Special features
Special features also play a huge price in the amount of money you will get for a vehicle. Let’s face it, everyone wants the latest gadgets and gizmos for their vehicle. Things such as Bluetooth, Android Auto, and Apple CarPlay will greatly drive the price of your car up. This is because they are popular commodities today. The same idea applies to features such as heated seats, air conditioning, and built-in GPS systems. When a vehicle lacks features like these, it may make your car outdated and unappealing to potential buyers.
We hope with this information, you will have a better idea as to what your car’s resale value is! Remember, when purchasing a new vehicle, having proper insurance is crucial. Contact us or request a quote today!
