Whether you are planning to buy a new car or want to sell the old one, you should be informed about some important factors that determine the resale value of a car. How you have been taking care of your vehicle over the years and whether you have been paying the premiums of your vehicle insurance regularly are some major factors that are taken into consideration.
9 Factors That Determine Your Car’s Resale Value
Here are some areas that require your attention to make sure that you get a good resale value of your vehicle.
- Mileage – Lesser the kilometres recorded, better will be the price. In general, 10,000 – 12,000 kilometres per year would be considered as a maximum limit. Anything over it will fetch you less price.
- Condition: It does not require mentioning that the condition of your car’s interior and exterior would have an impact on the bid value. One good idea would be to repair any dents, scratches, chipped paints in the exterior; and fix any issues in the door panels, seats, headliner, carpet, and console in the interiors. This will help you increase the value significantly.
- Make and model: Certain make and model, such as, Maruti’s Swift and Alto, Honda’s City and Hyundai’s Accent have high demands in the used car market. Moreover, the imported versions are also priced high.
- Accessories: If all your accessories, such as, power windows and door locks, the radio or CD player, interior lights and heater or A/C controls are functioning well, you can expect a higher resale value.
- Vehicle history: If your car has a clean history in terms of accidents, police cases and other collisions, you can expect to land a profitable deal.
- Colour: When buying a car, you should opt for ‘safe’ colours, such as, white, silver and black. Many consumers prefer those colours. This means that when you go for a resale, your car will have a higher chance of getting sold.
- Economic conditions: Though market conditions are beyond your control, yet it does affect the lifestyle of people and subsequently govern their buying decisions as well.
- Single handed or multiple drivers: A car handled by a single driver will usually be in a better working condition than one driven by multiple drivers. It’s no brainer that the former will fetch a better price.
- Car Insurance: If your vehicle is under the cover of a comprehensive motor insurance policy, it deserves a higher resale value. Make sure that you pay premiums regularly and do not make a default.
Apart from these factors, the season when you are reselling your vehicle could also have an impact on the value being offered. In India, you can expect a better price during festive seasons, such as, Diwali, Dhanteras, and New Year. Remember it is always a great idea to go for regular servicing to maintain and enhance the performance of your car.