Five factors that influence car resale value
A car’s resale value is important to bear in mind
A car’s resale value is important to bear in mind when you are investing in a new vehicle, and there are a number of factors that influence this. It’s also important to remember these factors while you own a car, to retain the best possible value of your vehicle for when you decide to sell.
It’s no secret that certain brands have far better resale value than others. We don’t like to pat our own backs, but Toyota vehicles command a healthy resale value because of the reputation for quality and reliability, as well as reasonable ownership costs. Remember that while you may be able to buy a less reputable vehicle for a lower price, you’ll also lose more money when it comes time to sell it again.
Colour is such a personal thing, but the industry has proven time and time again that conservative colours are best when it comes to resale value. White, silver, red and black are always popular, and are a safe bet.
This is an obvious one – buy a car in great condition and keep it that way. That means servicing it according to the schedule, dealing with any minor funny noises before they get worse, replacing shocks, tyres and other wear-and-tear items when necessary (this is also safer!), and being correctly insured so that you can get any dings repaired before they cause rust.
Some buyers place more weight on the mileage a car has done than by the age of the car. If you’re looking at two cars in the same condition, mileage could be the swaying factor. Also look at service plans and maintenance plans as well as warranties, because these are all affected by mileage.
Do some research into the various engine and gearbox options available before you buy. Some are better for specific tasks and others are better for fuel economy. These days fuel economy is a big deal, which makes fuel-efficient vehicles more desirable new and second hand. That being said, sometimes buying the less efficient vehicle makes more sense if you can get a great deal, or if you do very little mileage. Also take note that automatic gearboxes are becoming more popular every year, so command a premium but are easier to sell. Buying an all-wheel-drive vehicle like a RAV4 AWD or a 4x4 like a Prado is always a good idea, because they are constantly desirable.
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