Car Resale Value

Car resale value depreciation is normally the greatest expense during ownership of a motor vehicle. Our research indicates that the cost of depreciation over 3 years for a selection of popular vehicles is 3.5 times the cost of fuel. This is an eye opener to the majority of car owners. Consequently car resale value is a prime focus by us on your behalf. We often hear a client say that this does not concern them. The same client normally becomes very much concerned at trade-in time.

We will assist you to reduce the impact by intelligent vehicle selection, a great price, brand reputation, and other mitigating factors.

There are other factors that affect resale value

• Is this brand and model popular and does it have strong car resale value? This is the greatest influencer.
• Does this model enjoy a long established and reliable dealer network?
• Electric batteries have an obsolescence and as time and kilometres add up resale value is affected because of battery cost anxiety. Replacement costs can be many thousands of $$$$s, and this can effect resale value dramatically. In addition battery technology is moving ahead at a rapid pace and your shiny new EV ends up old technology very quickly, further affecting resale value. I am not saying do not buy an EV, even though I would not just yet.
• Is it a manufacturer that will likely remain in Australia long-term. A large number of manufacturers have left the Australian market in the past. We have too many makes of vehicles in Australia now. They will not all stay in Australia. You do not want to be left with an “orphan” that no-one wants.
• Will the car look attractive when it is detailed and made ready for sale?
• Will the body style date quickly?

In summary, a used car valuer is simply estimating how appealing a car will be to a potential buyer.

It is an interesting fact that more often than not the cars that are constantly discounted in the market place are the cars that have the lowest resale value.

If your finance includes a balloon payment or residual value and the resale value is poor, you are most likely going to experience a shortfall that you are liable to pay the financier.

Remember, if it sounds too good to be true, it is probably going to bite you, in this case, financially.