How Is the Car’s Value Affected by Its Service History?

Have you ever heard of the saying, “Never buy a car without a service history?” Probably not because we just made that up. But in all seriousness, it is wise to heed this advice, whether you’re buying or selling. We’ll tell you why in this blog.

What is a Service History?

Essentially, a vehicle’s service history is a collection of documents that tells you the history of the car, in particular:

• The work carried out on the car (and potentially more information about the service)
• The date when the work was performed
• The person or company that carried out the job

The service history includes the service book, a record that details all the services carried out on the vehicle. It typically comes with a stamp from that garage or body shop where the service took place. This stamp is only valid if it includes the date and mileage of the service.

But what exactly is this “service” that we’re talking about here? A service is a regular part of any vehicle’s maintenance. It is not the same as a roadworthiness check, which is not a requirement in Australia except New South Wales.

NSW is the only state in the country where vehicles are required to go through an annual inspection. This law applies to cars of over five years before their registration can be renewed. Note that safety inspections are required in NSW, Victoria, and Queensland before you can sell any car, no matter its age. In Western Australia, these checks are not a legal obligation. However, it does help boost the value of the vehicle.

Regular servicing plays a considerable part in the price of a vehicle being sold. Plus, it makes a huge difference to the car’s life. You can quickly determine its susceptibility to breakdowns or any mechanical problems that could lead to more expenses down the line. A qualified mechanic is responsible for checking several points. Where appropriate, the mechanic may change fluids, oil, and perhaps even other parts of the vehicle by the manufacturer’s requirements and service schedule.

Why Is Service History a Big Deal?

Knowing a car’s service history is an integral part of owning a car, whether you’re buying a second-hand vehicle or selling it. You want to make the most amount of money possible out of your car. That’s why you should have a full-service history, which significantly impacts the car’s value. And the more detailed it is, the better it is for you as the seller.

If you have service invoices, make sure that they are only from a registered mechanic or auto body shop. They should be correctly prepared, as well, typically including the name, address, and the business number of the car repair shop where the work was performed. They should also include the details of the job. If the repair shop is not registered, it’s not considered valid as part of the car’s service history.

Meanwhile, if you’re considering buying a used car, always try to look for choices that have a full-service history. If the one you are eyeing does not have this record, it is worth knowing that its absence should be reflected in the vehicle’s resale price.

We’re not saying that incomplete service history is a bad thing, and you should avoid buying a vehicle that does not have it. In most cases, it does not mean anything sinister. Some car owners simply lose the documents. As a buyer, this can be viewed as a good thing, specifically on the final price of the vehicle. The problem is you will not know the full story of the car. Was it treated well? What’s its actual condition? Not knowing the answer to these questions could end up in more costs on your end.

Before making a deal, you should know if there’s a complete service history. That way, you can avoid getting misled into buying a car that could cost hundreds or even thousands of dollars to repair. We also recommend that you know if certain service work should be done right away and whether it is an interim or recurring service.

Some changes that need to be made to the car can be extremely costly. For example, if a vehicle requires a new belt, it could cost you a lot of money. It’s also helpful to find out where the previous work has been carried out. Several car manufacturers are strict when it comes to vehicle servicing specifics, especially while they are under warranty.

Let us say that the car you intend to buy had its oil changed at the owner’s home by an unregistered garage or even a keen hobbyist. While this may be beneficial to the life of the vehicle, it does not count as service history. What’s worse is if the person did not use the correct parts or products. The job done to the vehicle may not be up to a professional standard.

So, if you’re thinking about selling your car in the future, don’t neglect its regular servicing schedule (plus other car value raising tips). At the same time, make sure the service provider is a registered professional. A UK survey showed that people expect the car price to drop as much as 23% if no service history is present. So, if you’re selling a car that’s worth $7,700, you could end up slashing as much as $1,750 off its value.

Are you ready to sell your car with a full service history? We Want Your Car! Hit us up and get a guaranteed attractive offer today.