Vehicles are notorious for being depreciating assets, losing value as soon as you drive them off the showroom floor. It’s not uncommon for a new car to shed up to 20% of its value in that initial drive – a fact that might shock many car owners.
However, despite market conditions and demand being beyond your control, there are actions you can take to safeguard your vehicle’s value while you own it.
WesBank, the financial service provider, offers invaluable suggestions to help you maintain as much value as possible throughout your car ownership journey.
- Research your purchase
Do some homework before committing to a purchase. Consider the historic market demand for the vehicle you’re eyeing. Are two-door models more popular than four-door ones? Is automatic transmission preferred over manual? Diesel or petrol engines? Explore used car websites to identify the most popular and better-resale-value vehicles over time.
- Choose your colours wisely
Think about the exterior colour and interior trim options. While luminous orange and acid green might suit a supercar, they may not be as appealing for a budget hatchback. Beige cloth seats could pose a resale problem, whereas black leather seats tend to be more attractive. Typically, neutral colours have broader appeal and better resale prospects.
- Mileage and maintenance matter
Variables such as mileage and car condition significantly affect resale value. Beware of tempting bargain deals on high-mileage vehicles, as they may require more ongoing maintenance, especially if you drive them frequently. Furthermore, ensure your car is serviced in line with the manufacturer’s recommended intervals. This instills confidence in dealers that the vehicle has been well-maintained, contributing to a higher resale value.
- Regular maintenance is key
Proper servicing is crucial to preserving your car’s value. Franchised dealers have the expertise and training required to keep your vehicle in optimal running condition. The odometer reading is one of the first factors dealers assess when evaluating a vehicle’s trade-in value. High mileage often results in lower offers. Additionally, consistent maintenance records reassure dealers about the vehicle’s care and condition.
- Keep your car in top shape
Maintain your car’s cleanliness and mechanical condition to ensure it retains its value. Minor scratches may not seem significant now, but accumulated damage can detract from your car’s appeal when it is time to sell. Regular cleaning and maintenance can help maintain your car’s value over the years.
- Be cautious with custom add-ons
While customising your car can be a fun part of ownership, excessive aftermarket accessories can negatively impact its resale value. Some add-ons may be permanent and may not appeal to potential buyers. Items like oversized rims, elaborate body kits and extensive stereo systems may not enhance your car’s worth, particularly when trading it in.
Owning and driving a car should be an enjoyable experience, and by considering the factors above and keeping your vehicle well-maintained, you can maximise the rewards of ownership right up to the day you sell or trade your car.
Source: WesBank / MotorPress
