There is a saying that the two happiest days of owning a boat are the day you buy it and the day you sell it. That may not be exactly true of cars, but there are factors that affect the resale value of an automobile. When you purchase a car, you aren't generally thinking about that day in the far future when you will sell it, but it will help you get more money for if you consider the following. It actually starts with the planning and purchase of the vehicle.
What Affects a Car's Resale Value
Get the Most for your Used Car
Check the Car's Rep Before You Buy
When you are dreaming about the car you plan on purchasing, there are some details that will help you get the best resale value for the car when you decide to sell it. We're talking about the make and model of the vehicle, even the color and options can help you get the best resale value. So, step one is to think about the reputation of the car brand and the specific model you are looking at. Hondas and Toyotas are especially well known for their reliability, longevity, safety, fuel efficiency, and resale value. If you purchase a new Toyota Camry, Rav4, or Prius, chances are that if you keep the vehicle in good condition, you will get excellent resale value when you sell it.
By the same token, bad press can take a toll on resale value. There was once a strange little car called the Ford Pinto that was known for bursting into flames in rear end collisions due to a lack of structural reinforcement in the rear of the car. You can't even give those away.Â
Volkswagen is still recovering from its "Dieselgate" scandal that happened in 2015 when the EPA issued a notice of violation to VW regarding the Clean Air Act. It seems that Volkswagen intentionally programmed diesel engines to activate their emissions controls only during regulatory testing. It was found that the vehicles emitted 40 percent more nitrogen oxide into the air than they should have. VW diesel cars value dropped through the floor and the brand's rep is still tarnished to a degree today.
That said, it is worth doing some research on the automaker and the specific model of car you are thinking of purchasing if future resale value is a concern for you. Keep in mind that if the car model you are selling has been discontinued by the automaker, it may mean that it will drop in value if consumers think it will be harder to get replacement parts.
On the other hand, some discontinued cars actually gain in value over the long haul. Take the Dodge Challenger Hellcat (2015 to present). Since Dodge decided to scale back on production of the 717-horsepower muscle car and its supercharged V8, used prices on the Hellcat have soared. The same can be said for the Chevrolet Camaro (2023) because it will be discontinued after 2024. The Mazda Miata (2016 to 2022) is going up in value due to its reputation as a great handling roadster.
Getting away from sports cars and muscle cars, the Toyota Land Cruiser (2016 to 2022) is soaring in value since the automaker decided to discontinue the three-row SUV in the United States. The performance-oriented Porsche Macan SUV (2015 to 2022) is also going up in value because consumers want a luxury SUV with plenty of raw horsepower before it is replaced by the electrified version in 2025.
You get the idea. Look into the history and reputation of the car you are thinking of buying and how it will play out in the next five years.
Why the Color Matters
The color of the car is important too. According to Kelley Blue Book, white is the most popular color for cars followed by black, silver, and gray. It seems that those colors never go out of style and over 70 percent of new car sales fall within those color choices. BASF conducted a study which found that 34 percent of car sales are vehicles that are white, followed by 22 percent for black and 14 percent for silver. Green, violet and beige are at the bottom of the list with only one percent of auto sales each.
We want you to drive the color of car that makes you happy, we are just letting you know the easiest cars to sell, and that retain their value, based on color. Speaking of, how you maintain your car's finish has a lot to do with its resale value. And that brings us to:
Overall Vehicle Maintenance
Think about what you look for when buying a used car yourself. You want a car that has been loved and cherished by its owner. When looking at the car, it should be clear to you that the owner made sure it was serviced regularly, got oil and filter changes as required by the manufacturer, and that the car was properly cared for in every way. That includes how well it was maintained in the looks department.
For best resale value, you want to present your vehicle in a condition that is as "showroom fresh" as possible. If you have always kept the vehicle stored in the garage and kept the car's finish well waxed and polished, you'll get more for it. If there are no rips or tears in the upholstery and the interior is pristine, you'll get the best resale value. Whatever you do, never smoke in the car. You'll never get that nasty smell out and no one wants your secondhand smoke to damage their health.
Besides basic looks and maintenance, keep away from bumper stickers on your car. You want to remove anything that makes a statement about who you are and what you stand for because the new owner may not have the same views. Nobody wants to buy a car that is littered with bumper stickers or travel stickers in the windows. If you are selling a Honda Civic, possible new owners may not want a bumper sticker that says, "My other car is a Porsche."
When it comes to removing stickers, be extremely careful not to damage the paint finish or chrome on your car. Remember that even if you manage to remove a bumper sticker without scraping the vehicle's finish, the paint underneath may be more vibrant than the faded paint around it. In other words, no matter what statement you are trying to make with a sticker, it will likely end up hurting the car's resale value. You have been warned.
Easy Fixes
You can't expect to get top value for your used car if it has a cracked windshield, damaged lights, or mismatched tires. Things that make your car look like crap will only get you crap money. The thing is, these kinds of repairs are worth the money to fix them. For instance, if you have a cracked windshield, most car insurance companies will take care of the repair, often without charging a deductible. Check with your insurance agent to see if you are covered for windshield repair or replacement.Â
When it comes to headlights and taillights, a burnt-out bulb or cracked lens is usually an easy and inexpensive repair. You don't want to sell someone a car that's missing a headlight. Swapping out bulbs is easy unless you have to replace a complete light assembly and even that can be inexpensive if you use an online used car parts distributor.
Lastly, let's talk tires. If your used car has bald, badly worn, or mismatched tires, spend the extra money to get a matching set of four new tires. Nothing shows you care like new tires. After all, what message are you sending to a prospective buyer if your old, worn-out tires don't even match by brand or age. That tells the world that you don't care about the car and certainly don't care about the safety of the new owner. Want top dollar? Buy a set of new tires.Â
Let Lithia Help
Looking for the best resale value on your used car? Let Lithia help. We have world-class service centers from coast to coast and factory trained technicians to help get your car in shape and ready for sale. And here's something to consider - with over 300 auto dealerships, we want your used car! You might be surprised at how much your car is worth. Come and see us. We'll trade your used vehicle in for a new car of your dreams.
