How many of us think about the future resale value when using our car? While we might think about the resale value when buying the car, it is the last thing on our minds while actually driving it. Hence, when the time comes to replace our old car with a new one, the resale price most often is a huge disappointment.
If you are one of that rare breed of pragmatic car-owners for whom resale value is always in the back of their minds, then you do not need to read further. However, if you belong to the rest of the general population who believes in just enjoying their car without worrying about its future, then read on for our expert tips on what determines the price of a pre-owned car.
Like for everything else, appearance matters for pre-owned cars – outside and inside. A car with fewer scratches, rust damage, no dents will see a better price. Clean interiors, well-maintained upholstery and electronic equipment are indicators of good maintenance. Regular servicing, oil change, battery life, good tyre conditions gives “the feel” during a test drive, and cars that feel good fetch a higher price.
This is probably the most important factor in a resale. Greater the mileage, more the car has been used; hence higher wear and tear and impact on the engine. A lower reading on the odometer will always command a higher price.
Brand and Model
A company that sells more cars in the new car segment also enjoys similar success in the used car market as more number of vehicles on the road means s a better service network including third party garages. On the other hand, an iconic bestseller model might fail to attract buyers if it is the only success in the manufacturer’s stable. Similarly, a model no longer in production will carry lower price over concerns on spare parts, servicing, etc.
Unless it is a vintage, the older the car, the lower the resale price. The reason is fairly simple – every car has a lifetime. And the closer it is to the end of its life, the lower the price.
A first resale will get a better price compared to a second or third resale. Company owned cars often fetch a lower price as multiple employees and chauffeurs may have handled the car, leading to an undesirable level of maintenance.
Some car owners prefer to trade in their used car under a buyback scheme. Such schemes from manufacturers often restrict buyback to its own models, with discounts on other brands usually a pittance. On the other hand, a direct resale to a buyer puts the onus of antecedent check on the seller and hassle of transfer of papers on the buyer. Used car dealers and websites offer proper documentation and take responsibility of all checks. Hence they attract more volumes of sales, resulting in better valuation of pre-owned vehicles.