Top 5 Factors That Affect Your Car’s Resale Value

When it comes to selling your car, understanding the factors that influence its resale value is crucial. This knowledge can help you maintain your vehicle in a way that maximises its worth when you decide to part ways. 

So, what are the top factors that affect your car’s resale value? Let’s take a closer look.

1. Condition of the Vehicle

Your car’s overall condition is a major player when it comes to determining its resale value. Let’s break it down for you:

Mechanical Health

Buyers, especially savvy ones, pay close attention to the engine’s heartbeat. A well-maintained engine not only ensures a smooth ride but also speaks volumes about the car’s longevity. Regular servicing and promptly addressing mechanical issues can make a substantial difference.

Cosmetic Appearance

First impressions matter. The exterior and interior aesthetics of your car play a pivotal role. Dings, scratches, and worn-out interiors can turn potential buyers away. Consider investing in minor touch-ups or detailing to give your car that showroom shine.

Upgrades and Repairs

Have you upgraded your car’s technology or invested in a high-quality sound system? While these upgrades may have enhanced your driving experience, they can also sweeten the deal for a prospective buyer. Highlighting such modifications can set your car apart from the crowd.

2. Mileage

Kilometres

Low mileage is like music to a buyer’s ears. A car with fewer kilometres on the odometer often translates to less wear and tear. It also means potential buyers won’t be facing major repairs anytime soon. However, don’t fret if you’ve been on a few road trips – just be aware that higher mileage can impact the resale value.

Impact on Depreciation

Cars are like fine wine; they depreciate with time. But how fast they age depends on how much they’ve been driven. High mileage usually accelerates depreciation, affecting the resale value. A well-maintained, low-mileage car, on the other hand, tends to retain its value better.

3. Service and Maintenance History

Complete Records/Complete Service History

Picture this: a buyer flips through your car’s records, documenting every oil change, tune-up, and repair. It instils confidence. Keeping comprehensive service records not only demonstrates responsible ownership but also assures buyers that your car has been well taken care of.

Proactive Maintenance

Regular check-ups, timely oil changes, and preventive maintenance showcase your commitment to your vehicle’s well-being. Addressing issues before they become major problems not only keeps your car running smoothly but can also elevate its resale value.

4. Vehicle Age

Depreciation Rates

Age is more than just a number when it comes to cars. It directly affects depreciation. New cars lose value rapidly in their first few years, but this depreciation curve levels out over time. Understanding the typical depreciation rates can help you gauge the resale value of your ageing yet reliable companion.

Market Trends

What’s hot in the market today might not be tomorrow. Stay informed about market trends – certain models might have higher demand or lower depreciation rates. Knowing the current market dynamics can empower you to set a competitive resale price.

5. Market Demand and Trends

Popular Models

Certain car models have enduring popularity. If your car belongs to a sought-after model, you might be in luck. Cars with high demand in the used car market often retain their value better. Popular models from reputable manufacturers tend to have a more stable resale value. E.g. Toyota Hilux, Ford Ranger.

Fuel Efficiency and Eco-friendliness

As environmental consciousness grows, so does the demand for fuel-efficient and eco-friendly vehicles. Highlighting your car’s green credentials can be an added bonus when negotiating a resale price.

Technological Features

In the age of connectivity and smart gadgets, tech-savvy buyers seek cars with the latest features. If your vehicle boasts cutting-edge technology, emphasise it. Whether it’s an advanced infotainment system or state-of-the-art safety features, tech can be a powerful selling point.

Conclusion

Several factors can affect your car’s resale value, including its age, mileage, brand, model, condition, colour, and current market trends. By understanding these factors, you can take steps to maintain your car’s value and ensure you get the best possible price when it’s time to sell. Whether you’re planning to sell your car soon or just want to keep its value high for the future, it’s worth keeping these factors in mind. 

Ready to uncover the true value of your car? Use Value My Car’s

– a quick, three-step process to get a free and accurate estimate. Gain the upper hand when negotiating with dealers and discover the price difference between a trade-in and a private sale. Get your instant car valuation now.

FAQs

There isn’t a one-size-fits-all answer to this question, as it depends on various factors such as the car’s age, brand, maintenance history, and model. However, on average, a car is typically driven about 15,000 to 20,000 kilometres per year. A used car with significantly lower than average annual kilometres might be considered good in terms of mileage.

In Australia, the average distance driven per car per year is around 13,400 kilometres, according to the Australian Bureau of Statistics. This figure can vary depending on the state or territory and the type of vehicle.

Cars with the best resale value in Australia often include popular models known for their reliability, durability, and brand reputation. Brands like Toyota, Mazda, and Subaru often have models that retain their value well. Specific models like the Toyota Hilux, Toyota Land Cruiser, and Mazda3 have been known to have strong resale values.

This can vary widely depending on the make, model, and market conditions. Some electric cars, like certain Tesla models, have held their value quite well. As the market for EVs continues to grow and the infrastructure for charging improves, it’s likely that the resale value of electric cars will continue to increase.

White is a popular colour choice for vehicles and is often associated with better resale value compared to more niche colours. White cars are seen as timeless and have broad appeal, which can make them easier to sell in the used car market.

Yes, car colour can affect resale value. Neutral colours like white, black, and silver tend to have better resale values because they are more universally appealing. Bright or unusual colours might be less in demand and could potentially lower the resale value.

Brands known for reliability and quality tend to have the best resale value. Toyota, for example, often tops the list for vehicles with strong resale values due to their reputation for durability. Other brands like Honda, Subaru, and Lexus are also known for retaining their value well.

To calculate the resale value of a car, you can start by checking our

The tool considers the car’s make, model, age, mileage, condition, and market trends. You can also look at current listings for similar vehicles in your area to get an idea of the going rate.