Car Buying Tips: Protecting Resale Value from the Start
When you first take ownership of a new vehicle, reselling it is probably the last thing on your mind. However, depreciation is a major cost associated with car ownership and one that should be taken into account with any vehicle purchase. In fact, an October 5, 2005 CNNmoney.com report attests that depreciation is the greatest cost incurred in the first five years of a vehicle’s life, surpassing that of maintenance and fuel. By being a conscious consumer and taking steps to protect your vehicle’s resale value, you can maximize your return in the event that you sell or trade your vehicle in the future. The following pointers are intended to help car owners obtain the optimal residual value from their vehicles.
-Analyze before you buy. When you are in the market for a vehicle, bear in mind that some types of vehicles simply hold their resale value better than others due to a number of factors. You may find it beneficial to consult current reports reflecting which vehicles have been found to hold value best, and keep this information in consideration when shopping for your next vehicle. What’s more, vehicles that are known to depreciate quickly may do so because of mechanical inconsistencies or failures, which may equate to higher maintenance costs on top of rapid depreciation for certain vehicle types.
-Document all maintenance and repairs. Maintaining your vehicle meticulously can keep it running to its optimal potential, prevent unnecessary repairs and contribute positively to its resale value. However, getting the best value when you sell or trade the vehicle will depend in part on your ability to show that such maintenance has been performed. It will pay off later to retain all maintenance records throughout your ownership of the vehicle, and include corresponding dates and mileage.
-Do not neglect “minor” problems. A small door ding may not sound like much of a problem, but can contribute to more rapid depreciation of your vehicle. Even a small scratch in your vehicle’s paint may provide the perfect environment for rust formation, after which damage becomes more apparent and repairs become more intensive and costly.
-Protect the interior. Properly caring for the interior of your vehicle will not only keep it looking new for you, it will also increase your chances of obtaining the best resale value for the vehicle when the time comes. Caring for the interior of a vehicle involves keeping it clean as well as protected. Refrain from habits such as eating in the vehicle, which can lead to stains and odors. If eating on the go is unavoidable, consider limiting it to foods with the least potential to spill or stain. You may want to take cleaning a step further and apply protectant to the hard surfaces to protect against damaging UV rays.
Optimizing the resale value you can expect to receive for your vehicle involves attention in both making the purchase decision and caring for the vehicle during ownership. Besides maintaining your vehicle and keeping it clean, you should also consider the effect on resale value when making modifications to the vehicle. A modification as simple as changing the paint color from white to yellow can affect a drop in your vehicle’s resale value. Likewise, an already yellow vehicle will likely not hold its value as well as an equivalent one in a more conservative color. In determining which vehicle to purchase and whether to modify it, be sure to contemplate whether the average car buyer would agree. Making the right decision could be worth thousands of dollars.
About the Author: Greg Chapman, of Greg Chapman Motors, is a leading provider of used cars for sale in Austin TX. For more information please visit Greg Chapman Motors.
-Analyze before you buy. When you are in the market for a vehicle, bear in mind that some types of vehicles simply hold their resale value better than others due to a number of factors. You may find it beneficial to consult current reports reflecting which vehicles have been found to hold value best, and keep this information in consideration when shopping for your next vehicle. What’s more, vehicles that are known to depreciate quickly may do so because of mechanical inconsistencies or failures, which may equate to higher maintenance costs on top of rapid depreciation for certain vehicle types.
-Document all maintenance and repairs. Maintaining your vehicle meticulously can keep it running to its optimal potential, prevent unnecessary repairs and contribute positively to its resale value. However, getting the best value when you sell or trade the vehicle will depend in part on your ability to show that such maintenance has been performed. It will pay off later to retain all maintenance records throughout your ownership of the vehicle, and include corresponding dates and mileage.
-Do not neglect “minor” problems. A small door ding may not sound like much of a problem, but can contribute to more rapid depreciation of your vehicle. Even a small scratch in your vehicle’s paint may provide the perfect environment for rust formation, after which damage becomes more apparent and repairs become more intensive and costly.
-Protect the interior. Properly caring for the interior of your vehicle will not only keep it looking new for you, it will also increase your chances of obtaining the best resale value for the vehicle when the time comes. Caring for the interior of a vehicle involves keeping it clean as well as protected. Refrain from habits such as eating in the vehicle, which can lead to stains and odors. If eating on the go is unavoidable, consider limiting it to foods with the least potential to spill or stain. You may want to take cleaning a step further and apply protectant to the hard surfaces to protect against damaging UV rays.
Optimizing the resale value you can expect to receive for your vehicle involves attention in both making the purchase decision and caring for the vehicle during ownership. Besides maintaining your vehicle and keeping it clean, you should also consider the effect on resale value when making modifications to the vehicle. A modification as simple as changing the paint color from white to yellow can affect a drop in your vehicle’s resale value. Likewise, an already yellow vehicle will likely not hold its value as well as an equivalent one in a more conservative color. In determining which vehicle to purchase and whether to modify it, be sure to contemplate whether the average car buyer would agree. Making the right decision could be worth thousands of dollars.
About the Author: Greg Chapman, of Greg Chapman Motors, is a leading provider of used cars for sale in Austin TX. For more information please visit Greg Chapman Motors.
Labels: get most from trade in, maximize resale value, resale value factors, used car value factors
posted by Greg Chapman at
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