Car depreciation guide
Sadly, new cars begin depreciating almost from the moment they are bought. In Australia, cars will decrease in value by up to 50% within a few years of ownership. This means a drastic drop in the value of your vehicle when it comes time to resell on the used car market. To set the sale price on your vehicle, the market value of your car only goes so far to provide a potential valuation.
To get an overall view of the potential value of your vehicle you have to take into consideration any ‘red flags’ that may affect sale offers from buyers. There are many signs that could affect your car’s value on the used car market. To repair your chances of selling for the best possible price, here are 10 reasons your car may be worth more or less than you think:
Market value
The market you’re selling in will be the biggest factor determining the potential sale price of your vehicle. Due to COVID-19-related production and shipping shortages, the used car scene in Australia has become a seller’s market. A seller’s market means that buyers are willing to pay top dollar for assets because of a lack of availability. This helps current sellers receive excellent resale value on their vehicles. While this is excellent for sellers of today, a market dependent on world shortages can be volatile and can’t be relied on to stay high.
Make and model
While this may be obvious, different makes and models of a vehicle will affect the resale value of your car in more ways than one. While some cars will sell for more simply because of the brand of a vehicle, second hand buyers will also look favourably on models known for reliability. If your car’s model has a reputation for durability, it’s much more likely to sell to buyers looking for affordable and reliable vehicles.
Technology
Vehicles that come with advanced technology will often receive higher offers on the used market. Features such as backup cameras, hands-free parking assist, highway autopilot modes, and computer navigation systems are highly sought after.
Transmission type
While manual transmission vehicles are considered to be the most fuel-efficient, automatic cars typically have more resale value. This kind of value placement typically varies from buyer to buyer, as choice on transmission type depends entirely on the preferences of the shopper.
Maintenance history
To get ahead of reselling, vehicle owners should have maintenance performed at regular intervals. Cars that come alongside rigorous maintenance documentation are typically viewed as in better condition than vehicles with none. Even if your car has been regularly serviced, if you don’t keep up-to-date records of mechanic visits you may not receive the same enthusiasm from buyers.
External damage
While a dint here or there can be easy to ignore for car owners, potential buyers will not be so forgiving. Scratches, dents, and visible rust can be off-putting for buyers looking for well-maintained cars. No matter how small the damage, any aesthetic issues on your vehicle will lower the sale price you receive.
Mechanics
If your vehicle comes with mechanical issues, it may be worth resolving the problem before taking your car to market. Issues with your engine, transmission, or suspension will not be looked at favourably by potential buyers. To receive the best price for your car, you may need to resolve mechanical issues before presenting to shoppers. Unlike outside damage which some buyers may be happy to overlook, mechanical issues often result in dramatically lower purchase offers.
Mileage
Even if a vehicle is spotless, a high-mileage car is likely to sell for far less than similar vehicles with half as many miles on the odometer. As a rule of thumb, most buyers will not steer close to a vehicle nearing 200,000kms on the clock. If your car is near this mileage range it’s best to keep a maintenance record to prove the reliability of your vehicle or make peace with receiving lower purchase offers.
Accident history
Are you an accident-prone driver? Even if your car is no worse for wear, if your vehicle has been involved in a serious accident you may receive less resale results. Cars with an accident history, or that have been involved in a natural disaster i.e. a flood, are often viewed suspiciously by buyers.
Interior condition
While the interior condition of a car typically ranks last in importance after mechanic and outside condition, this can still be a factor in the resale value of your car. Cars with dirty or damaged seat materials are often offered less. Other condition indicators like smoke smell or excessive stains lead to a decrease in value. Second hand buyers will often gravitate towards cars with excellent interior conditions as it indicates a level of care from the original owner.
Ready to offload your vehicle but not sure where you belong on the market? With ongoing variations in the prices of used cars, it is important to be confident that your vehicle is valued fairly. At DIYinspect, we provide offers to sell your car based on real-time data. We understand the condition and value of the car from information you submit to us. We’re backed by Pickles, Australia’s top asset remarketer. With decades of experience in the resale industry, Pickles has the technology and resources to assure you you’re dealing with the best of the best.
To get started, simply conduct a DIYinspect inspection. To begin the process of offloading your vehicle, download the DIYinspect app today (App Store or Google Play).
