Ever thought about your vehicle’s resale value? We’ve already discussed some factors to consider when purchasing a vehicle. Thinking about the resale value of your current vehicle, as well as a vehicle you may be purchasing is an important aspect to consider as well. Vehicles tend to depreciate almost 30% after one year. The depreciation rate can be more or less depending on several factors. Here are some factors that may affect resale value:
-Mileage of a vehicle is almost always the question buyers ask right after the price of the vehicle. If a vehicle is in great condition and has nice technology but has a lot of miles, the rest of the benefits of the vehicle won’t offset the loss of value that high mileage creates.
- Trim Level
-On most vehicles, the base model’s resale value will not be worth nearly as much as an upgraded trim level. The only reason for purchasing a base model is to save money on the newest model so you can drive it until the wheels fall off. But if there is going to be a thought of trading in a vehicle, go with an upper trim.
-A lot of articles are saying that technology payments for a new vehicle won’t pay off when selling. I disagree. A lot of people who call in to inquire about specific used vehicles, have particular technological features that they would like. Technology is huge whether it be a DVD player or Sync 3.
- Exterior/Interior Condition
-This is an obvious factor to consider when owning a vehicle, as well as purchasing a used vehicle. The trade in value of any vehicle will be greater if the exterior condition is good. Take off all bumper stickers, license-plate frames etc. Perhaps consider purchasing new floormats, rather than keeping those stained smelly old floormats.
- Mechanical History
-Try to keep an in depth history of service reports. The more that is known about the vehicle’s history the better. Follow the manufacturers recommendations for maintenance.
- Beware of Aftermarket Accessories
-In general, aftermarket additions don’t add much value to the vehicle, and they can also void the factory warranty. It may seem like a good idea to spend $2,000 on a supercharger or a new stereo, but the idea of these items to the next buyer may be of little or no value.
- All-Wheel Drive
-Depending on where the vehicle is being sold, it may increase the value if it has all-wheel drive. In the south, selling an all-wheel drive vehicle may not be very valuable, but in the northeast it would be very helpful.
-Although a certain color may be hot now, in 5 years that may not be the case. Stick to standard colors.
- Know Market Conditions
-Before selling/trading in, understand the current market for that particular vehicle. Pay special attention to the season of the year as well. In the summer people are more inclined to want a convertible than in the winter. Also pay attention to gas prices, as well as the MPG of a particular vehicle.
It is a wise investment to think of these things before purchasing a vehicle, or while owning a vehicle. Other than a house, vehicles are perhaps the biggest investment for people. Keep these things in mind whether purchasing or currently owning a vehicle.