What impacts your car’s trade-in and resale value? We suggest when looking to trade-in your current car for an upgrade, you shouldn’t accept the first offer you get. Various factors affect the trade-in value of your car, and we’ll list only a few of them below.
Impacts of a car’s Trade-in And Resale Value:
- Make, model and variant of your car
Some brands are more popular than others, some have been in the market for much longer, and others keep their value for a longer period. Other factors that the evaluator needs to consider is the model and engine variant of your trade-in as well as any history of defects in such models or variants.
- Recondition Costs
Dealers need to resell your trade-in at a profit, but they also need to ensure that it is in the best possible condition when it gets delivered to a new owner, and therefore the dealer needs to provide for any reconditioning of the car, including body work, mechanical and valet for example.
The worse the condition of your trade-in, the lower the offer you will receive.
It was mentioned before, but some cars and brands are more popular and in higher demand than others and often dealers will pay a strong amount for trade-ins that are in high demand.
- Service History
Abiding by your car manufacturer’s service schedule not only ensures that won’t experience a costly breakdown on the side of the road, it also helps with the amount that you are offered when you trade your car in for a new one.
By providing a service history on your car, you’re giving the dealer and prospective new owner peace of mind that the car has been well maintained and won’t fall apart around the next corner.
The mileage on your car affects your trade-in offer to a certain extent. We all know that cars aren’t made to last forever and with higher mileage comes the possibility of mechanical issues and potential costly repairs.
An older car doesn’t necessarily mean that you won’t get a decent deal when you trade it in, but as with mileage, the possibility of a costly breakdown on an older car is far more likely than that of a newer model, and will be taken into consideration when your car is evaluated.
The colour of your car not only affects your insurance premium, but also plays a part in the trade-in and resell value of your car, since white and lighter coloured cars are easier to spot on the road making it safer to travel in – a vital aspect for many buyers.
There are many more factors that could affect the trade-in value of your car – but it all comes down to the same principle: take good care of your car, drive safely and adhere to regular services and you should be just fine.