A brand new car starts losing its value immediately it leaves the dealer’s shop. It loses about 10% of the value depending on the brand. So, if you buy a car today and sell it several hours later during the day, you will make a loss of at least 10% of its value.
Sad, right? This is why a car is said to be a liability, but it’s a liability we can’t live without. Now, besides the depreciation bit, here are more critical factors that make a car lose its value.
The brand of the car
Regardless of other factors such as the condition of the car, the brand dictates the value. There are brands that will fetch a higher amount because of their popularity among users. Then, we have high-end luxury brands, such as the Volkswagen, which retain a higher resale value because of the fact that they are high-end.
That is why a dealer with a yard of VW commercial vehicles for sale will take home way more compared to one selling low end or unpopular brands. When planning to buy a car, it is advisable that you buy a brand that retains a higher resale value.
And, don’t think that just because a car is costly, it will fetch you more when reselling. No. There are cars that cost an arm and a leg, but immediately you drive off the dealer, they instantly depreciate with more than 10%. If you buy a car and you intend to sell it at a good amount, sell it within the first six years of ownership.
The condition of the exteriors and interiors
This is rather obvious. A well-maintained and a clean-looking car will definitely give you bargaining power when selling. So, clean the exterior of the car thoroughly, repair any cracks and dents, remove unnecessary things such as those old stickers and labels, and paint where there are chips before you put your car in the market.
For the interior, get rid of any unpleasant odour or else you will lose a potential customer. You can also change a few things such as the mats to make it look well-maintained and get rid of non-functional features.
The mechanical condition
The mechanical state of the car matters a lot. No one wants to buy a “dead” car. As such, keep your car in top-notch shape. Service it regularly, repair it as soon as you notice any faults, and drive it smoothly and safely. Keep a record of all the service appointments.
Additionally, the lower the car mileage, the higher the resale value. Also, the higher the mileage, the lower the resale value. To be on the safe side, try and maintain about 10,000 miles a year.
The colour of the car
This might not seem like much, but it does make a difference. A white car can fetch you extra dollars while a coloured car will fetch you less the same amount. So, stick to the most popular colours among buyers — white, black, and silver if you intend to resale your car.
In conclusion, it all comes down to how well a car is maintained. Period! That is when we put its brand aside.