How to Maximize Your Car’s Resale Value

The value of your car at the moment you sell it is considered the resale value. There are many factors that can affect this and some of those factors are things we can actually control! The resale value is something most people don’t think about until they are considering selling, but it should be considered when you purchase your car (if you know at some point you will be selling it) as some factors affecting the resale are inherently built into the vehicle. Let’s take a look at some of the things we CAN do to increase our car’s resale value.

When you are making your purchase

Consider cars with inherently higher resale value

Some makes such and Toyota, Honda and Subaru tend to hold their value well. Additionally, luxury vehicles such as Lexus and Acura tend to depreciate more slowly.

Select a neutral color

Fancy, trendy colors are usually not as popular among the masses and therefore can negatively affect the resale value. Neutral colors like black, gray, or white are typically good for resale value.

Upgrades and Options

Some upgrades will help, while others may hurt the resale value. For example, leather interior tends to have a higher resale value than cloth interior. Navigation systems and many safety features tend to help with resale as well. Just be careful-while you may want those tinted windows, not everyone else does.

While you own the vehicle

Proper Maintenance

Be sure to follow the maintenance schedule set up by the manufacturer. For example, be sure to complete routine oil changes, fluid checks, brake checks, tire rotations to name a few. Don’t disregard minor repairs and pay attention to any safety recalls. It is helpful to find a trustworthy mechanic you can use for all maintenance and service to ensure consistency.

Documentation

Keep all documentation from your service provider noting what has been done throughout the years.

Drive Safely

Avoid bad driving habits that can add wear and tear to your vehicle like stopping too fast, accelerating too fast, shifting too quickly, overloading your car with additional unnecessary weight and constantly driving with the gas light on. And obviously avoiding collisions will keep your car in better condition.

Protect the Interior

Avoid eating, drinking, or smoking in the car to avoid spills, smells, and stains. Repair minor scratches and other damage as soon as possible before they worsen. Getting your car detailed by a professional (or doing it yourself) on a regular basis can help preserve the interior.

Protect the Exterior

Park in a garage or covered parking area when possible to avoid damage from extreme weather that may damage the paint or fade the interior cloth. As in the above scenario, repair minor dents and scratches as soon as possible before they get bigger. Regular washing and waxing can help protect the paint as well.

Consider Upgrades

Some entertainment upgrades or safety upgrades, like Bluetooth-enabled systems or back up cameras may help increase the value of your car. However, beware there are many other “upgrades” that may adversely affect the resale value so make sure you do your research before installing any upgrade.

Before you sell your car

Make it look new

Getting the car detailed inside and out will help remove stains and odors, revive the interior, as well as help it to look shiny and new on the outside too. Clean out all interior storage including the glove box. Remove bumper stickers and magnets. Additionally, make sure any and all repairs have been completed. How do those tires look? Is the windshield in good shape? Some repairs might not be worth fixing based on the year of your vehicle and cost of repair. This is a great time to consult your mechanic.

Do some research on the value

There are websites to assist in determining the current resale value of your car. You can also ask a car expert or service provider to provide you with an appraisal. Having an idea as to the value will help you negotiate the sale or at least keep you from going into a negotiation with no information.

Know when to sell

If you are going to a car dealership, it is best to avoid busy days so the sales people are less distracted when working with you. According to AAA, vehicle sales peak in March and April. Selling later in the year can be more difficult, although they also note that the COVID-19 pandemic has drastically changed the used car industry.

Selling (and buying) a car can be very stressful. Make sure you take plenty of time to work through the process to get the most out of your transaction. Don't be afraid to ask for help from professionals! And when you do get that new car, make sure to contact your Advisor to ensure you have the proper auto insurance policy!

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