Resale Value

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:

  1. Mileage
    -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.
  2. 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.
  3. Technology
    -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 3.3047643-inline-i-1-with-sync-3-ford-gets-its-connected-car-mojo-back
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. Color
    -Although a certain color may be hot now, in 5 years that may not be the case.  Stick to standard colors.
  9. 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.

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