Factors That Can Affect your Car Resale Value

Sales of second-hand cars have been phenomenally high since the previous year. The excellent build quality of cars imparting longevity, the arrival of reputed multi-brand used car dealerships, and feasibility of getting a car of one’s choice without many complications have been pivotal in augmenting the sales. It is imperative for a seller to get maximum value for his/ her car.

Several factors can affect a car’s performance, quality, and condition. Leading to a reduced resale value than one expects. Car owners are often confused about the way to present a car to the prospective buyer. They consider washing and cleaning the only part to ensure better rates. The resale value of the car will depend on the usage, maintenance undertook, vehicle history, single/multiple owners, and other factors that can directly influence the car’s present condition. 

General Condition of the Car

The first thing a client will check for is the general condition of the car. It should be in a good shape, without any major modifications done on the body. Of course, the modification may have been done to exalt the appeal. However, it may not be to the taste of the customer. Moreover, s/he may consider the loss of authentic appearance a negative point. Besides the fact that modification might have affected the strength of the original chassis. Expect a comparatively reduced resale value, in a normal scenario, if the car has been modified. 

Single/ Multiple Owner Usage

The wear and tear of the clutch, gearbox and other internal components will depend upon the way one uses it. Therefore, single owner cars have more value than the ones driven by many. Most of the sellers state the car to be a single-owned one, to increase the resale value. There also had been a conception that cars owned by lawyers and doctors will fetch more value. Resulting in every seller putting the relevant stickers indicating those professions in their vehicle. The excessive number of lawyer/ doctor-owned vehicles had boomeranged consequently.

Kilometers Run

It is an obvious fact that the value of a car is inversely proportional to kilometres run. As one can understand, the more the usage the more wear and tear. The kilometres run and usage will have a direct implication on the performance of the car. You may note that a diesel engine offers twice the life of a petrol engine car. Ideally, a petrol engine performs excellently for about 2 lakh kilometres (approx.). However, the performance parameter of a diesel engine is much higher.

Suggested Read: Top 6 Cars to buy for Beginners and Young Drivers

Brand and Model of the Car

Certain car brands and specific models have better resale value than other cars. Potential clients understanding the value of the particular model will offer you a good price. However, you may not expect the same offer from every buyer. He or she should understand the value of the model to offer you a better price than normal.

Some latest car models have failed flat in attaining customer attention due to several reasons including workmanship and build quality. Therefore, even though those have advanced technical features, the resale value is less. We request you to buy a second-hand car only from a reputed dealership or a reliable seller. To discuss the detailed aspects related to each model and finalizing the right one for you.

Discontinued Models

Although successful, the manufacturer might have discontinued some of the models due to lacklustre sales figures or other business necessities. The availability of spares and accessories may be a concern for the buyer. He or she will consider the complications involved in obtaining the spare parts and will evaluate the car accordingly. The resale value of those models will be extremely low in such cases.

 Manufacturing Year of the Car

The cars in India are given an initial life of 15 years. The owner has to subject the car for revaluation at the RTO for extending the life for 05 more years and so on (consider the latest scrap policy by the central government as well). Hence, the manufacturing year of the car plays an important role in deciding the value of the car. You cannot expect a high resale value if the car has been used for more than 10 years. Furthermore, the long service life will have a direct impact on the internal condition of major and minor components including the engine and gearbox. The frequent defect is another problem that is dreaded by the buyers, making them offer less value to old cars.