What you need to know about resale value

When people think about the resale value of their car, they mostly consider its mechanical and cosmetic condition as driving that value.

While the overall condition makes up the majority of your car’s worth, there are other factors you can leverage when selling your car.

• Utility and location. When buying a car, you think about where it will go, what you will need it to do, and which model will be best at fulfilling your needs. So does everyone else. Where you’re selling your car will have some effect on its resale value. If we think in terms of Sydney CBD, for example, any car sold within a 5km radius of the city centre will likely spend much of its time squeezing between parked cars on narrow roads, backing in to small spaces and generally trying its best to be as tiny as possible. Someone selling a compact Mazda3 in this area is likely to attract more of an audience than someone selling a Ford Falcon. Why? Because the local landscape makes size a burden. Further out in the suburbs, however, you’re likely to find just as many people looking for an economic and roomy sedan as a compact hatchback.
   
• Style. Like any market, cars are at the mercy of buyer taste – meaning trends will hold direct sway over demand for your car. It pays to be aware of them. As with utility, you’ll find that the car’s locale will have a lot to do with its perceived “cool factor”. There aren’t too many tricks to figuring this out. The types of cars you see a lot of will be the ones that sell best. Selling a car in a classic colour, as opposed to a faddish one, will also ensure your car appeal is as universal as possible.
   
• Upgrades. Some car upgrades can contribute significantly to your car’s worth. Anything that makes the car’s operation less of a chore and more of a treat will generally fetch you a little more at sale. Things like automatic transmission, leather trim, sunroof and electric windows are valuable to most buyers. ABS is almost expected as standard these days, making it an upgrade option that people will pay you for. Aftermarket customisations and stereo kits do not generally add anything to the resale value, as these are more niche interests.
   
• Documentation. In the private market especially, any documentation (service logs, receipts for any work done) that demonstrates the car has been well cared for will convey to buyers that they’re dealing with a genuine and trustworthy car owner, making it easier for them to buy with confidence.
   
• Condition. Despite all the other considerations, condition is king, so one of the best ways to preserve your resale value is to maintain the car’s overall health. Keep it clean, keep it serviced and keep its interior unblemished. This simple principle alone will go a long way towards ensuring best possible resale price.

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