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.

Preparing your Vehicle for Sell or Trade

Whether you are selling your vehicle privately or trading it in at a dealership, the goal is to maximize the monetary value that you receive in return. Below we address some tips that will help you get the best resale or trade-in value for your vehicle.

-Make sure the vehicle is immaculate inside and out. First impressions happen in a matter of seconds and cannot be taken back. Whether you detail the car yourself or have it done professionally, cleaning is an extremely important step that should not be underestimated. Not only does cleanliness emphasize the best features of the vehicle, it portrays that the vehicle has been taken care of in other ways as well.

-Repair noticeable damage, even cosmetic. Seemingly insignificant problems such as broken console parts, minor body dents, broken headlights or missing hubcaps affect the overall impression that a buyer will get about the condition of your vehicle. Dents can often be repaired for minimal cost and without requiring that the entire vehicle be repainted. Again, eliminating such problems gives the impression that the vehicle has been cared for and maintained in other areas.

If your vehicle has damage that you do not plan to repair, obtain an estimate for the cost of repairing the damage, and use the estimate in negotiation. Acknowledging any problems and being proactive with a buyer will help build your credibility from the buyer’s perspective.

-Inspect and replace tires if needed. Tires should appear fairly new and have a considerable amount of tread. Dealers often deduct from the trade-in value they would otherwise offer because tires are not in good condition. Likewise, car buyers are not as receptive to a purchasing a vehicle that immediately needs tire replacements.

-Be ready to provide maintenance records. The ability to present accurate and organized service records for the vehicle will bestow confidence in the buyer about the vehicle’s history. If you have not been diligent about maintaining a service log yourself, check with your regular mechanic or dealership which has worked on your vehicle about obtaining a printed version of your vehicle’s maintenance history.

-Be smart during the transaction. Make sure to include a provision in the bill of sale stating that the vehicle is being sold “as is,” that is, without a warranty. Request payment in the form of a money order or cashier’s check, eliminating the chance of being scammed or facing issues associated with accepting a high value personal check.

Finally, be honest about the history of your vehicle, including any needed repairs or problems that the new owner will have to address.

About the Author: Greg Chapman, of Greg Chapman Motors, is a leading used car dealer Austin has depended on since 1959. For more information please visit Greg Chapman Motors.