People shopping for cars spend considerable time weighing things, and it's not just about the look of the car or its performance.
If you’re like some people, you may even take into account a car's resale value when it's time to sell it in the future.
That's right, and I call it smart thinking. For those people, their car-buying decisions depend on how much their car might fetch on the used car market five or ten years down the line.
When I decided on my car a few years back, it never occurred to me to think about its resale value. Looking at it now, I do see the merit of considering it in the purchase decision.
What Factors Actually Affect a Car's Resale Value?
We’ll look into that question in this article and a few specific car models that are most valuable on the Australian resale market.
#1 Make and Model
For starters, the make and model of the car is probably the most fundamental thing to consider. Car makes and their reputation create a demand among car buyers, so it’s not surprising that you’ll get the best car resale value by brand.
For example, German cars are renowned for their engineering and are perceived by buyers as reliable. Japanese vehicles, on the other hand, are better known for their fuel efficiency, among other things.
When buyers look for a pre-owned vehicle, some may be willing to pay a little more for a German or Japanese model for the reasons mentioned.
#2 Fuel Consumption
Some cars, mostly Japanese models, are known for their fuel efficiency. Today, a car's fuel consumption has become a critical factor in people's car-buying decision-making. Who wants to dig deep into his or her pocket for a gas-guzzler?
Aside from the economic reason, fuel-efficient cars are also environmentally sound. Buyers who are concerned about the pollution they are contributing may not want to drive a vehicle that consumes fossil fuel. This opens the door to other types of vehicles, improving the uptake of electric models in the market.
It's safe to assume that further down the line, people will be less interested in driving gas-guzzlers, reducing the car resale value of such models. So, if you're buying a car with the intention of selling it in the future, be sure to take this into the equation.
Factors such as the make, model, and fuel consumption of a car are things that you can't change, so don’t count on them when it comes to preserving your car's resale value.
However, there are a few other factors that are well within your control, such as the next item.
#3 Mileage
Mileage is a crucial factor in the resale value of a car because it is a good indicator of the vehicle's wear and tear. A car with high mileage means that it has been used through and through.
Buyers will typically be concerned that it has a higher likelihood of breaking down than cars with lower odometer readouts. For this reason, buyers would usually prefer to spend more money on a vehicle with lower mileage.
Unless a vehicle is a classic, high mileage typically means you’ll get the worst car resale value for it.
#4 Interior and Exterior
To enjoy high car resale value, you'll need to make sure that the interior and exterior of your vehicle are also well maintained. This is one reason why it’s critical to get your vehicle cleaned and polished regularly.
On the outside, we're talking about maintaining the car's paint job and any attachments it might have. Inside, you'll want to consider the upholstery, the dashboard, its instrument panels and more.
Over the years, these things will experience a lot of wear and tear, no matter how well you take care of them. That's nothing to worry about though. This is why there are businesses devoted to detailing cars and supplying almost any aftermarket replacements you could ever need. If you're looking to maintain the resale value of the car over the long-term, getting these replacements may well be worth the investment.
#5 After-Sales Maintenance
This one is a little obvious for many, but it's still worth mentioning. To maintain the resale value of a car, you must get it serviced regularly. Cars typically have a maintenance schedule, usually every few months or every few thousand kilometres. So be sure to stick to that schedule.
Aside from the wear and tear of car parts, it's also important to consider things like rust. Depending on how old your vehicle is, heavy rusting will be bad not only for your car but also its resale value.
Modern cars are usually treated with rustproofing when they're built. However, this too could wear off. Clean the vehicle regularly and invest some time and money for rust repair if its condition is terrible.
Remember: Nobody is going to pay top dollar for a rusty used car that has not been serviced regularly.
#6 Service Records
Keeping up to date with car maintenance and repairs is great, but it'll be even better if you had proof of it. By keeping all your servicing records intact, you’ll have something to show to potential buyers whenever necessary.
Having a well-documented track record of your car's maintenance will help maximise its resale value. This is because buyers will have more confidence in paying a higher price for a vehicle if they can see that it’s been well cared for.
Best Car Resale Value by Brand in Australia
OK, so you now know the factors dictating the best price for a used car. Next, we’ll get a quick look at some of the best car makes and models that will get you the most bang for your buck.
Firstly, it seems that the popularity of specific used car models is closely related to current trends. Simply put, brands and models that are popular as first-hand vehicles also tend to be sought-after in the secondhand car market.
So, brands with strong reputations such as Volkswagen, Hyundai, Subaru, and others in the league are equally popular among buyers seeking pre-owned vehicles.
Even models that had been around for a while, like the Toyota HiLux, Mazda CX-5, Toyota RAV4, and Ford Ranger, remain to have the best car resale value on the Australian used car market, thanks to their stellar reputations.
Need a Car Resale Value Calculator?
Before you go negotiating the price for your old car, make sure you have a rough idea of its value. It will serve as your benchmark for getting a good price. We find this and this as reliable car value calculators that you can use to instantly see what your car is worth.
Keep Ahead When It Comes to All Things Car!
When replacing parts prior to reselling your car, make sure that you source them from reliable sellers. You don’t want to compromise your sale by using low-quality replacements.
That’s how CarPartAU can help you – by assisting you in locating car parts and automotive professionals the easy way through our website tools. They’re free and easy to use, so don’t waste any more time! Try our parts request tool now!
By Ray Hasbollah