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 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:
- Servicing history to manufacturer log book specifications.
- Accident damage, particularly with evident poor repair, can be extremely detrimental.
- Excessive kilometre reading is another obvious negative. Average kilometres per annum is approximately 15,000.
- Is this brand and model popular and does it have strong car resale value? This is the greatest influencer.
- Has it been serviced properly?
- How much more life (unused kilometers) has it got to offer?
- Will the car look attractive when it is detailed and made ready for sale?
- Tyre life remainder, registration, and colour also have a bearing.
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.
If you have any questions regarding car resale value please contact us here.
Peter Lloyd