When buying a car, you shouldn’t just look at the sales price. You should take into consideration its resale value. If you can look at older cars of the same model, this could be an indication of what your car will be worth in two- or three-years’ time.
The average time a person holds onto a car before replacing it, is around five years. It is possible to increase the resale value of your car, so when it comes time to sell you get the most out of it. Following these simple tips is a good way to get the most out of your car when the time comes to sell.
Proper Vehicle Selection
It’s no secret that some cars hold their value better than others. You can research vehicle by age and make, you should be able to see the price averages drop over time. Try to look at cars that have a similar appearance and use, this will give you a good idea of the cars value in age only.
The colour you choose can have an impact on value. People can be picky with colour and some colours hold value more over others. Here are the top six most popular car colours in Australia:
- White – 30%
- Silver – 20%
- Blue – 12%
- Black – 10%
- Grey – 8%
- Red – 7%
Sometimes it is possible to get a better deal on an unpopular colour, it all depends on how long you intend to keep the car. If your plan is to not sell the car but rather use it to its full extent, then you don’t need to be so careful with your colour selection.
The Garage Location
The location that a car has been owned in can make a great impact of the value of the car. For example, if the car has been located in a seaside area, salt rust can be a major issue.
The general condition of the roads the car has been driven on can also have an impact. It’s important to remember that not all roads in Australia are equal, with some states taking better care of their roads than others. South Australia for example has a very good reputation for taking better care of their roads, while Victoria focusses more on city roads. Therefore, you would rather buy a car that has been based in country South Australia over one in Victoria, you are going to get a car that has been affected less due to the condition of the roads.
Checking the Odometer
How many kilometres the car has travel will reflect on the overall value of the vehicle. For example, a car that is five years old but travelled 100,000 kilometres will be worth more than a car of the same age that has travelled 150,000 kilometres.
With general use you can expect a car to do around 20,000 kilometres in a year. You should keep a note on how much driving you are doing and how this may negatively affect the value of your car.
If your car is used for work purposes, you may find that you are travelling many more kilometres than the average person. If this is the case then you’ll need to find a better selling point when time to sell comes, so people can still see value in your car. Perhaps you have installed extras, such as a better stereo system, or increased the cars towing capacity.
Keep Up with Maintenance and Have Records
Keep a record book filled with all the maintenance you have done with the car. At the most basic level you should have an ongoing record of when the car was serviced and by whom. Follow your manufacturers guidelines to when the car should be serviced. Some people prefer cars to be serviced by the manufacturers and while this can add value, often these services are substantially more expensive. For the best solution do a little bit of research to find a car that has been serviced by the manufacturer and compare it to one that hasn’t. Does the price of the servicing accurately reflect the asking price of the car? If it doesn’t, then getting your car serviced by the manufacturer might not be the best way.
Having Your Car Certified
Obtaining a certification of the car being clean of any accidents or other issues can increase the value of your car, because while saying something is much more powerful when you can produce a document that backs it up.
The certificate should state, where the car has been registered, how many kilometres it has done and if any monies are owed against the vehicle. Holding this sort of document shows you as a trustworthy seller. You may purchase a car history report or ppsr certificate from Carify or other online services.
Keeping it Clean
Just like a good meal, often the first thing a buyer sees and cares about it what the car looks like. Then everything else becomes second. It doesn’t matter how perfect your car is otherwise, if it doesn’t look good you won’t get anyone coming down the gate to make an offer if it looks bad.
Keeping records of what you have done to the car beyond the servicing can show a prospective buyer that you are serious about the way you look after the car. You can keep track of when you travelled and how often the car was washed, while it may seem a bit extreme it demonstrates that when you say the car was looked after you can prove it.