After deciding that you will sell your car, you’re probably wondering how much it should cost. Because it is a used vehicle, you know that it will be lower than the amount you purchased. Most sellers get a little bit emotional, which results in pricing their car incorrectly. They want to get the most profit out of the sale. Although getting the maximum resale value seems far-fetched, there are actually ways that can help you get a decent valuation.
If you have maintained your car and it’s in good condition, you could get a good amount of money out of it. However, not everyone keeps up with their car’s upkeep. Chances are, you could be one of them. So does it mean you should settle for a lower resale price? Not at all! In this blog post, we will share the top ways to effectively get you more money for the car you’re selling.
But first, let’s get into the basics.
What is the Car’s Resale Value?
Simply put, the resale value is the final amount of the car when sold in its present condition. The original value of the vehicle declines quickly, usually each year. There are a few factors that affect the resale value, including:
- Car make and model
- Type of vehicle (SUV, luxury, truck, etc.)
- The reputation of the car based on the brand or manufacturer
- Age & kilometres travelled
- Specification & upgrades
Many people don’t think about the resale value of the car during the purchasing stage. But, in reality, you may not be using the vehicle for the rest of your life. So, next time you purchase one, you should think about the resale value. It will have a significant impact in the future once you are ready to sell it.
Additionally, you will get more out of your auto insurance coverage if you drive a high-quality car. If ever you get into an accident, the insurance firm will determine the amount you can claim based on your own vehicle. In addition, if your car already has a higher resale value than average, you will get more money to have the car fixed. You can also use the compensation you receive to buy a replacement vehicle.
The Top Ways to Increase Car Resale Value
After driving a newly bought car off the lot, it will begin to depreciate. This and other parts of your car’s value are certainly out of your control. However, it does not mean you cannot improve the payout value when selling it. Here are the techniques in increasing the car’s resale value:
- Have Proper Documentation.First and foremost, you should have proper documentation for your vehicle. All service records, including those issued as receipts for maintenance, upgrades, and repairs, should be kept. It’s also a good idea to save paperwork from the moment you bought the car, which will verify its purchase price and any other pertinent history. You may need to gather insurance documents, including claims from the car insurance company, as well.
- Ensure the Car is in Good Shape.Keeping up with maintenance is easier said than done. Unfortunately, many car owners skip routine service inspections and even oil changes. While it is forgivable, it’s not recommended, especially now that you have decided to resell the car. Regular maintenance may be inconvenient for your schedule, but it can make a huge difference in the final price.
Remember that the better the condition of the car is, the higher its value can be. Upgrading will indeed increase the resale price, but it may be out of the question if you’re facing financial difficulties. After all, you want to sell your car in exchange for money (unless you have another reason). The good news is that you can maximise your car’s value without spending much. For example, you can replace the tyres if they are too old or worn, change the brake pads, or get the car’s transmission serviced.
- Fix Any Issues.If you have only used your car for a few years or less, it probably does not require a lot of repairs. However, if it has been in your garage for some time, chances are there are issues that you should get checked and fixed.
Many people drive around even when they have a broken taillight. You may have noticed that the car windows no longer work, so you have to turn to manual cranking. While they may be simple setbacks for you, the potential buyer may not want to deal with these issues. Consider making repairs first before you sell the vehicle so the buyer will have no qualms in paying for what you’re selling.
- Install Upgrades (If Your Budget Permits it).Just like the second and third suggestions above, this next one is optional, as well. However, if your goal is to raise the resale value of your vehicle, installing upgrades will give that impact you’re looking for. Before you proceed, though, make sure that you have done your research on this area. Be aware that upgrades are not created equal. Not everything will help in increasing the value of your car.
An example that you can look into is adding a Bluetooth infotainment system, which can also connect to a smartphone. This upgrade is undoubtedly worth the investment, mainly because it’s what many buyers want. Other good ideas include a backup camera and safety alerts.
Meanwhile, you may have to think twice if you’re thinking about installing flashy rims or tinted windows. While they may be what some people are searching for, most buyers are not keen on these additions. And by installing them, you will probably do more harm than good when it comes to the resale value of the vehicle.
- Get an Appraisal.It is always possible that you will receive a low offer from a private buyer or dealership. Because you’re willing to get rid of your car quickly, you could end up losing a lot of money. Often though, dealers and buyers will give you a low offer so that there is enough room for them to negotiate. Although that is the case, you may still not like their price. It’s a little tricky considering the situation where you simply want to have the car sold as soon as you can.
But there is a good tactic that you can try here, and that’s why having a mechanic or expert appraise the vehicle. This person should inspect the car from all angles in the flesh. Don’t just send pictures to someone, even if you trust them.
An appraiser will base the value of the car on its condition, upgrades, age, upkeep, and all other information you provide. Use the cost given to you as your guide to know the best price range for your vehicle. And while you’re at it, don’t forget to ask how you can increase its value.
- Learn What Aids in Reducing Car’s Selling Price.As mentioned, there are aspects about your car that you cannot change. The following is a list of those aspects that can work against you and affect the final resale value of the vehicle.
- Total kilometres travelled
- Age of the car
- Smoking in the car
- Aftermarket modifications and non-OEM spoilers
- Tinting of windows
- Neglected maintenance
- Visible damages in the exterior and interior
- Bumper stickers
Sometimes, even the colour of the car can affect the resale price. It’s never wise to pick a funky colour, such as yellow or even maroon. While there are buyers interested in them, they are in a smaller market, reducing your ability to sell. Instead, go for the standard choices, such as white, black, grey, and dark blue.
By understanding the things that reduce the vehicle’s value, you can check if some problems can be fixed or improved. In some cases, simply maintaining and keeping documents can contribute to a higher offer.
While you’re trying to improve your car’s value, your concern will slowly shift to finding a buyer. This is where it gets complicated because dealerships will always try to give you a low price. Many will even give you the “take it or leave it” ultimatum. On the other hand, private buyers can be hard to come across. Since your car loses value over time, it is not a good idea to keep waiting.
Use a Car Buying Service for the Maximum Return
Attractive offers are difficult to achieve even if you sell your car privately. Auctions and dealerships are not good options unless you are strapped for time. So, what’s left for you to do? If you haven’t heard of car buying services, you’re missing out. They are for people searching for car buyers willing to pay for used cars at an attractive price.
Car buying services are also ideal for those who do not have enough time. You probably have to fly to another country or in need of quick cash to fund a necessary purchase. You no longer have to turn to social media and online ad services to find a buyer. These methods can take weeks or even months.
With an online car buyer, you simply provide details of your vehicle, some photos, and your available time. After inspection, you will be quoted a price, which you can agree or disagree with. If you like the offer, you can get the money instantly or within 24 hours. It’s so simple and straightforward that it does not require any work on your part.
We Want Your Car WA is Western Australia’s premier car buying service provider. Sell your vehicle to us today. Contact our friendly team or fill out our form on the website, and we’ll get in touch with you ASAP.