7 Things That Affect Your Car's Resale Value

Planning on selling your car and unsure how to price it? When it's time to move your vehicle on for something new, it's essential that you know how much it's worth so you get a fair price for it.

The problem is cars can be tricky to price unless you know the market inside and out. However, understanding the things that can affect a vehicle's resale value will lead you in the right direction.

This guide includes seven of the most important factors that will greatly impact the fee if you ever sell your vehicle.

The Car's Age

As soon as you drive a new car, its value starts to decrease from then onwards; that's just the nature of the beast.

The first few years after you buy a new car are actually the biggest price depreciators; the value drops are around 15% to 20% a year for the first three to five years, but it depends on the make and model.

Even if the car is in amazing condition and has low mileage, it doesn't matter because market trends are always changing. Consumers want what's new, not what's old, so the age of your car will eventually impact the resale price.

How Much Mileage Your Car Has

Mileage is one of the first things a potential buyer will look out for. When they have a look inside the car, they'll check the odometer, and if they see a lot of miles, you're in trouble.

A car with high mileage is a major red flag, as it's a sign that the vehicle has been driven a lot and has had heavy usage. Another problem with it is that it puts the car at risk of having to be brought to a mechanic regularly, so buyers may see it as more hassle than it's worth.

The Brand and Model

The big car brand names like the Porsches and Bentleys of this world are well known to auto enthusiasts, and they come with high price tags. 

Generally, a car from one of the bigger brands is worth more than a vehicle from a lesser-known one. However, this isn't always the case, as some brands might be well known, but the standard of their vehicles may not be up to the standard of something as reliable as a Toyota.

Models are another important factor. Since newer models are the craze, consumers will be willing to spend more on them than on something older. Certain models still hold their value, though, like Toyota Tacomas, so you might be in luck, depending on the spec of your car.

The Overall Condition of Your Car

There's a lot to be said about a car well-looked after by an owner. Buyers will always spend more on a vehicle they know has been taken care of; it doesn't go unnoticed. 

From the moment you see a car, you can tell if it has been properly maintained. All you have to do is look at the body, the tires, the cleanliness from the inside, and the smell, which can indicate someone has been smoking in there.

If your car has scratches, cracks in the windows, or other noticeable issues, its value will be greatly decreased, so you'll need to get it looked at before you put it on the market. Sadly, when someone lets issues like these build up over time, a car can become unsellable, so they'll have to try to get rid of it for a fraction of the price at the scrap yard.

The Accident Record

Sure, accidents happen, but they matter to someone who wants to buy your car, so you must be upfront and honest with a buyer if the car has been through one.

Consumers are less likely to buy a car if it has been involved in an accident. They'll want to see a full report of the repair and check for any underlying issues with the vehicle after the damage is done. If they find something, they'll probably call off the sale or try to get the sale price lower than agreed. 

On the other hand, if your car's record is clean and hasn't had any damage, it could be good news for you as you can charge a much higher price for it.

The Fuel Type and Engine Size

The less fuel a car consumes, the more valuable they are to someone because they're not spending as much money at the pump every week. 

This is a big reason why electric vehicles have been increasingly popular in the past couple of years. They're known to be much more affordable to run, but they cost a lot of money, so if you own one, you could be in for the big bucks.

Engine sizes also play a big part because when fuel is expensive, the demand for cars with bigger engines tends to decrease because, in most cases, they consume more fuel.

The Market

Some things are entirely out of your control when you're selling a car, and the market is one of them. 

If people aren't buying cars, the market slows down, which means you have less of a chance of selling your vehicle. Some car owners might be hoping to get a quick sale, so they bring down their asking price, which drags down the value of certain types of cars on the market.

Another issue is if there's a surplus of the same type of car being sold at the same time, which can be for a variety of reasons. This will force owners to lower their prices to keep up with the competition, so you might not get as much as you initially planned.

What Do You Think Your Car's Resale Value Is?

These are just some of the things that can affect your car's resale value, but it's by no means an exhaustive list. Depending on the type of car you own and your geographical location, there could be a whole other wave of things that may impact it, too.