Aug 08

Factors That Affect Resale Value

Most people are not overly concerned with their car’s resale value…that is until they go to turn it in for a newer model.  Unfortunately, new cars lose a great deal of their value as soon as they leave the lot, but there are ways to help ensure you receive the very best value down the line.

According to High Gear Media, there are 9 factors every driver should be aware of in order to optimize resale value:

Brand:  More than 60% of a car’s value can be retained simply by having the right first name.  Mass-market brands including Subaru, Honda, Hyundai, Mazda, and Toyota, as well as the luxury brands Lexus, Acura, Infiniti, Mercedes-Benz, and Audi, are among the automakers with the highest residual-value scores.

Drivetrains:  Unless you are looking at a performance sports car, it’s best to stick with automatic transmissions for maintaining resale value.  All-wheel drive options are also preferable, particularly in regions affected by severe weather.

Paint color:  While metallic purple may sound like a good idea at the paint shop, you may end up with a completely unsellable car.  Stick with classic colors like white, silver, and black for maximum resale potential.

Technology:  Less is more when it comes to technology, especially in regards to the “latest and greatest” features.  Stick with technology that is both functional and easy to use to earn back the up-front costs.

Performance Parts and Aftermarket Accessories: Again, less is more.  Most aftermarket accessories end up lowering resale value, especially if they cause the car’s warranty to be voided.

Exterior Condition: Keeping your car washed and free of scratches is an easy way to maintain its value.  Also remove any bumper stickers or logos prior to selling.

Interior Condition:  No one wants to buy a car that smells like smoke or pets.  Make sure to have your car cleaned and, if needed, consider replacing floor mats with inexpensive ones to improve its appearance.

Mechanical Condition: Keeping service records is an easy and quick way to prove to a potential buyer that your car is in great condition, increasing its value immediately.

Overall Mileage: Once again, less is more!  Just as location is one of the most important factors in real estate, mileage can make all the difference to a car’s resale value.

Don’t let easily avoidable factors affect your car’s resale value.  Stick to the basics when purchasing a new car and follow simply maintenance advise, and your car should fetch top resale value when it’s time to sell.

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