It is all-pervasive that most new cars lose an indigestible value within the moment of the car being driven out from the dealership. However, there are some which retain their value much better than others.
What could be the reason for such discrepancy? We delve deep into some of the factors.
Car Make
Prominent brands such as Honda, Toyota and Hyundai are known to offer a relatively higher value in the pre-owned car market as there is a sense of trust, reliability and confidence associated with the models of these brands. Many people smitten by Toyota jokingly assert that their cars last longer than the lives of their owners. When such is the perceived reputation, a car will command more value and the buyers might be willing to dish out more for them.
Car Maintenance
A conspicuous observation, well-maintained or well looked after cars will certainly fetch a higher resale value compared to those which have started showing serious signs of ageing. Some cars which are built better and engineered with finesse are likely to serve with more allegiance irrespective of the abuse thronged at them and will disparage at a rather measly rate too. However, it would be advisable to keep the car in a scintillating condition, getting it serviced when required and following the owner’s manual with diligence.
Car Modifications
There are quite a few things to fathom and reckon with respect to upgrading your vehicle. The automobile fanatics have a longing for machines that are an enthusiast’s delight and will breach the barrier going all guns blazing to jazz up their car with stiffer suspensions, vehement woofers, ECU tweaks, sporty decals & vinyls and what not.
Albeit such upgrades increase the potential of the car, buying them from just any after-market garages can vilipend the car’s value by an unforgiving margin. Moreover, not every buyer would be ready to spend his hard-earned money on such an upgraded car and might prefer the stock model instead. After a certain point of time, the value of the car will ultimately depreciate and be much lesser than the cost of the upgrades itself compelling one to sell it for a trifle.
Car Ageing
It’s a given that as your car keeps thriving with you, it starts losing its value. This is mainly because it would’ve lost its novelty factor as we use it and clock so many miles on the odometer. However, several other considerations such as the make, model and the condition of the vehicle have a say in determining its worth. A car from a better brand and a highly reputed model will still attract a relatively higher value than others. Have you already started thinking of the Toyota Innova? Well, it’s the quintessential example to provide weight to this fact.
This is one of the reasons why some cars are still bought in mammoth numbers despite being around for quite some time in the market and not having any spectacular features as such.
Cars which are cosseted throughout their interplay with the owner will sell faster and for a higher price too. The first-gen Honda City VTEC is a prime example of this selling at exorbitant prices even today where other cars which debuted around the same time can only be found biting the dust at a scrapyard.
Luxury Car Resale
Luxury cars are susceptible to the highest rate of depreciation throughout their life and lose value enough to make you question your investment. More expensive the car and greater the number of customisation options, higher will be the value lost immediately after driving off from the dealership. This reflects that luxe cars better be bought as used as you will get the car for a smidgen amount and won’t have any quibbles with the pejorative value either.