If you’re thinking about selling your car, you’re also probably wondering how much it is worth. To accurately gauge this, it is important to understand several factors that can affect the resale value of your vehicle.
What is ‘resale value’?
Resale value is the amount your car is expected to sell for in the future. According to OpenRoad Auto Group, in order for a vehicle to have a good resale value, it should retain 40-50% of its original retail price after five years.
What factors affect the resale value of a vehicle?
There are nine factors that affect resale value. These factors can range from economic factors to the vehicle’s colour palette. Some vehicles are affected by all these factors, and some are only effected by a few. Nonetheless, they are all things to consider before selling your used vehicle.
1. Economic Factors
The strength of the economy indirectly affects the value of your used vehicle. If the economy had a recent downturn, wait until it recovers before deciding to sell your vehicle. This way, you can be sure you get the best value for your ride.
For instance, the value of used vehicles has increased dramatically in recent years because of new vehicle shortages. In other words, now might be a good time to sell!
2. The Season
Certain vehicles will have a higher value during certain times of year. If you’re selling a Toyota Tundra, it would likely have better value during the fall/winter than the spring/summer months. If you are selling a truck with a lift kit, it will likely have a slightly higher value during the winter when those types of vehicles are more in demand.
If a car has high kilometers, it will likely sell for less than a vehicle with lower kilometers. A few ways to reduce your mileage are: accelerate gently, maintain a steady speed, anticipate traffic, avoid high speeds, coast to decelerate, and simply drive the car less by carpooling or using public transportation.
4. Transmission Type
Generally, manual transmissions sell for less than automatic transmissions simply because fewer people know how to drive a stick shift nowadays. Other factors such as mobility issues, preference, and convenience also influence the resale value of manual transmission vehicles.
5. Exterior and Interior Condition
First impressions are important, and the same goes for vehicles. Before someone considers purchasing a vehicle, they will always observe the exterior of the vehicle to make sure it suits their preferences—the same goes for the interior. Cleaning your vehicle inside and out will make the vehicle look better, which will in turn add to the vehicle’s value.
6. Maintenance and Accident History
The amount of maintenance that your vehicle has received over the years will directly affect its resale value. If you plan to sell your vehicle in the future, keep service records for the entirety of owning it to ensure it gets the best value.
Accident history can also drastically affect the value of a vehicle. According to Money Crashers, if your vehicle has been in an accident, this can lower the value by 10%. Its best practice to be transparent with your buyer about the vehicle’s history, as any repairs will show up on the vehicle’s CARFAX report, so they are bound to find out eventually.
7. Aftermarket Parts, Modifications
Modifying your vehicle with non-original parts and equipment can lower the resale value. If you’re planning to sell your vehicle to a dealer, it’s best to stay away from these modifications.
Vehicles can evolve quickly. New technology such as back up cameras, lane assist, and navigation can substantially increase the resale value of your vehicle when compared to a more dated counterpart. According to Money Crashers, the value can increase by thousands or even tens of thousands of dollars if the technology in the vehicle is up to date.
If you’re considering selling your car in the future, it’s best to choose colours such as gray, white, black, or other muted tones as this will allow you to reach a larger buying clientele.
How do I move forward?
Though there are many factors that can affect the resale value of your vehicle, the selling process with Birchwood Toyota makes it simple.
Birchwood Toyota offers instant cash, visits to verify your car’s features and conditions, and a cheque for your vehicle within 48 hours. Visit birchwoodtoyota.ca to trade in your vehicle today!