10 Factors That Influence Your Car’s Resale Value

If you've ever bought or sold a used car, you know there's a lot to think about when setting a price. If you're selling, it's crucial to understand the factors that decide a car's value. Otherwise, you might end up getting a bad deal without even realizing it. 

To avoid that, you need to learn how to calculate your car's value. In this article, we'll explain all the factors that affect your car’s resale value.

Here are some of the factors that influence your car’s resale value:

 

1. Mileage and age

Cars lose value over time, so the older they are, the less they're worth. As a car ages, it usually racks up more miles, which affects its value too. When selling, people often ask about the mileage on the odometer. The higher the mileage, the lower the value of the car. Even if your car looks perfect and hasn't been in any accidents, one with a lot of miles will likely sell for less than the same car with fewer miles on it.

 

2. Accident history

If your car has been in an accident or had any damage that led to an insurance claim, it could lower its value. Nowadays, it's easy for buyers to check a car's history with services like Carfax, so they'll likely find out about any accidents your car had.

The exact impact on your car's value depends on the situation, but generally, a serious accident, even if fully fixed, can reduce its resale value by at least 10% compared to a similar car with no accidents.

 

3. Aftermarket modifications

Customizing your car with aftermarket modifications can significantly impact its value. These modifications often lower the value because they're based on personal preferences. Plus, if they break, they're usually more expensive to fix than standard parts. That's why experts recommend keeping the original parts and putting them back before selling the car.

Some examples of modifications that can hurt your car's value include fender extensions, window deflectors, large wheels, custom paint or film, overly bright headlights, and decorative eyelashes on headlights. These modifications don't increase the value of your car and might even make it harder to sell.

 

4. Latest features

If your car doesn't have cool tech features like Bluetooth, Apple CarPlay, or Android Auto, or backup cameras, hands-free parking assist, autopilot modes, it might not attract today's tech-savvy buyers. This can lower its overall value. The same goes for comfy extras like heated seats or air conditioning. People really like these features and might not want to pay full price for a car that doesn't have them.

 

5. Color of your car

When choosing a color for your car, it's best to stick with simple and muted tones. These include soft colors without too much shiny metal or fancy designs. While some people like bold or unusual colors, most prefer common ones like gray, white, black, or subtle shades of blue, red, or green. However, if you have a sporty or high-performance car, unique colors can attract attention and may even increase its value because they stand out from the crowd.

 

6. Exterior and interior conditions

Scratches, dents, chips, bumps, and rust spots make a used car less attractive to buyers. Before putting your car up for sale, make sure to clean the interior thoroughly. Get rid of any bad odor, clean plastic and vinyl surfaces, and consider getting new floor mats. If your car has leather seats, clean them well to make them look brand new. This will help your car look its best and attract more buyers.

 

7. Demand in the market

Some cars are more popular than others, which can make them more valuable. If a certain make or model is trendy or in high demand, you can expect to sell it for more money. However, if it's a common car or one that's often stolen, its resale value might be lower. Also, if you're selling a rare or highly sought-after car that few people are selling, the price will likely go up because it's harder to find.

 

8. Car maintenance

Keeping up with maintenance is crucial for maintaining your car's value. Cars that aren't well-maintained lose value faster than those that are taken care of.

Make sure to change the oil on schedule and follow any other maintenance recommendations from the manufacturer. If you plan to sell your car, keep detailed records of all the services it's had while you've owned it. This will help you get a better price when you sell.

 

9. Fuel type

The type of fuel your car uses, whether it's a hybrid or electric, can impact its price. When fuel prices go up, more people want fuel-efficient cars, which can raise their prices. Nowadays, electric cars are becoming more popular because of high gas prices. So, the price of used electric cars might be higher than before.

But when Canadian fuel prices go down, people might prefer bigger cars with more power and space, which can make their prices go up.

 

10. Vehicle brand

Some brands are known for being more reliable than others. However, this reputation doesn't always match up with the car's overall quality. For example, German brands like BMW and Audi are praised for their engineering, but they often don't hold their value well when you go to sell them. On the other hand, Japanese brands like Toyota, Subaru, and Honda usually have better resale value than average. 

Before buying a car, do your homework! Use trusted sources like Edmunds and Kelley Blue Book to research different makes, models, and trims. Get ready to negotiate because most car deals involve some bargaining. Also, learn about the factors that affect a car's depreciation and resale value. It might seem like a lot of work, but it'll pay off in the end!