The moment you get your new car off the dealer’s showroom, its value begins to depreciate. This is a cost that you have to factor in when you buy a car with the intent of selling it after a few months. So you may try to buy a car that has a history of good resale values over the years. Also, the resale value of a car that you may get from a dealer is not as good as a private party’s offer. However, if you don’t have the time and patience then you may sell it off to a dealer.
What Is Resale Value?
Resale value means the trade value of anything after its purchase and this will be the amount that the owner of that good expects from a buyer. A car’s resale value could be based on several factors as there are so many choices for a buyer. They consider the following main criteria while purchasing a used car before putting a dollar value for the car.
This is the most important factor and relates to a car’s future depreciation, say 3 or 5 years later. As per car experts, a vehicle may lose up to 75% of its value after 5 years, while some fare better others may be quite pathetic.
A well-cared used vehicle would have good pricing as per the resale market.
The condition of the resale market is another factor that could influence buyers. Financing deals are an eye-catcher when you don’t want to pay a huge payout for your dream car. If you want the best resale value for your car from a dealer then it won’t help if they already have dozens parked in the lot similar to your car. It may not even matter that your used car is in mint condition. Supply and demand do play a role in the resale market for cars.
A car buyer may look at the brand and measure it as per how popular or prestigious it is. Reliability or quality is generally associated with popular brands and some buyers do not even check other brands. For example, a Honda fan may not even look at Toyota cars.
If you are trying to sell your flashy-colored car then fewer buyers may show interest than a standard-colored car. Think of garish orange versus silver, black or white.
When your car has advanced features such as a navigation system, extra cameras, sensors, etc. then your car may fetch a higher price.
Last but not the least, higher kilometers on a car may mean a lesser price considering all other variables same.
How To Calculate Resale Value Of Car?
A lot of people may decide to sell off their car just because they are bored of it or want a better one. Then comes the math to figure out how much could you get for your used car. You may follow the below steps that could help you to calculate the resale value of your car. Or, you may just plug in some variables in an online calculator to get the resale value, depreciation cost, etc.
- Check out the MSRP (Manufacturer Suggested Retail Price) of your car and the price to get it on the road ( taxes etc.)
- Then you need to research and find out what could be your car’s residual value after using it for ten years.
- Subtract this residual value amount from your car purchase price and divide it by the number of months to get the depreciation for each month.
- Calculate the current resale value of your car by removing depreciation cost from the original MSRP and making adjustments as per the time of usage.
List of Best Resale Value Cars 2017
- Toyota Prius c
- Subaru XV Crosstrek
- Toyota Camry
- Toyota Avalon
- Volvo XC70
- Audi A7
- Porsche Panamera
- Dodge Challenger
- Porsche Boxster
- Jeep Wrangler
List Worst Resale Value Cars 2017
- Nissan Leaf
- Dodge Charger
- Mercedes-Benz SL-Class
- Chevrolet Camaro
- Kia Cadenza
- Volkswagen Beetle
- Chevrolet Express
- Mitsubishi Lancer
- Kia Optima
- Cadillac CTS
What Can You Do To Maintain Resale Value?
There are a few tips to get a good resale value for your car that does not begin overnight but over a period of time, you use your car.
When you buy a popular car that has a history of the good resale value at a good bargain then you have a winner. If you spend some time for research and get advice from relevant ‘experts’ then you may get a good deal. This means that when you sell your car after a few years you may not worry that you paid too much, to begin with.
Dents and scratches on used cars put off buyers easily. So, if you safely park your car then your car is protected against most hazards. If you have a garage to park in when you don’t drive then that is great.
Keep the mileage low
Total mileage on a used car is a vital factor for its resale value. So, if you have a choice then drive less as it could pay off in the long run. A used car with 60000 km may get a better resale value than the same one with 100000 km on it.
The overall condition of your car also depends on how well you cared for it. Fixing any parts that need repair and washing your car regularly along with waxing it in a couple of years could go a long way when you decide to sell it. Keep a record of your car maintenance and show it to the prospective buyer as it may show your care and diligence. When you maintain a car well then the expensive and important parts do last and perform as per the manufacturer’s claim.
When you eat and spill food all the time then the interiors of your car are going to be smelly with lots of ugly stains. Avoid eating as much as possible inside your car and especially not while driving, it is distracting. You may use a vacuum regularly to remove any debris and leftovers, especially with pets or kids. It is a good idea to use durable seat covers to protect the original seat fabric. Remember that the buyer will look at not just the exterior luster but also the interior condition of your car to put a price.