The moment you drive off in your brand new car, its value starts to depreciate. It may sound exaggerated but research shows that cars lose about 20% of their value annually. You may expect that the value of your car will depreciate with time. However, there are factors that may increase the rate at which your car’s value depreciates.
Below are factors that can affect your car’s resale value in the used car market.
1. The colour of your car
Even though teal might be your favourite colour, you may be surprised that potential buyers may not like it. It is a bit difficult to find a buyer who prefers bright colours for their cars. Most people would prefer to have basic colours such as black, white or silver. Having your car painted a unique colour makes it difficult to find a buyer and forces you to settle for a lower price than you initially intended. Stick to the basic colours whenever you are ready to sell your car.
2. The make and model of the car
The make and model of your car may affect your ability to sell the car. The cars that are more practical to use and offer better fuel efficiency tend to be more preferable in Kenya. However, do not be discouraged as the preference of the buyers also matters a lot and is likely to affect your car’s resale value.
3. After-sale service
When you buy a brand new car, the car will come with a warranty covering from between three to seven years from its date of manufacture. Buyers interested in purchasing your car will want to know if the dealership offers quality after-sale service. Some car brands offer better after-sale services than others. Therefore before you buy a new car, read other peoples reviews on this issue before you settle on the car. It will save you a lot of headaches when it’s time to sell your car.
4. The condition of the interior and exterior of the car
Nobody is willing to buy a car that has not been well cared for. The interior condition of your car will show the buyer the level of effort you put in taking care of your car. Conduct regular interior car detailing to try and improve your car resale value.
The occurrence of scratches and dents on the exterior of your car is not only unpleasant but may lead to the development of rust in such areas. Buyers will use the condition of your car’s interior and exterior to bargain for a lower price. Conduct minor and major repairs on your car before you sell it.
5. Your car’s mileage
The wear and tear of your car highly depend on how far your car has travelled. Your car’s mileage will affect your car’s resale value. A car with high mileage will have a lower resale value compared to a car with lower mileage. Buyers find cars that have a lower mileage more attractive to buy and are willing to pay more for such a car.
6. Your car’s service records
Maintaining your car in mint condition can positively affect the resale value of your car. A potential buyer may want to see past service records as proof of how frequently you service your car. The service records can help the buyer evaluate the past and present condition of the car. It is advisable to keep these records as they will help you when you want to sell your car.
7. The age of your car
Aside from collector’s items and classic cars, the older your car the less its value. Classic cars are capable of maintaining their value or even having their values increase over time.
The age of your car may even affect the financing options available to the car buyer. Cars that are over nine years tend to have potential car loan issues and some banks may even refuse to offer financial assistance.
8. Modifications on your car
If you are going to modify your car, ensure you add items that will increase the value of your car. Adding safety features, leather seats and upgrading your infotainment system will definitely increase the resale value of your car.
However, adding weird features that generally make your car unattractive or affect its performance will reduce the resale value of your car.
Your car’s resale value isn’t the only thing you need to look at when buying a new car but it is one of the important facts you need to consider. It is important to know what factors can affect the resale value of your car and to what extent before you buy it. Knowing these factors will help you make better-informed decisions as you buy a new car and will save you from losing money when you want to sell it.