In Knowing Your Car’s Current Value (Part 2), I started the discussion how to determine the value of your vehicle. Today, I will continue by sharing 4 more important factors that influence the estimated value. Let’s begin with the factors listed below:
- Aside from the car manufacturer and popularity, another factor to consider is the age and mileage of the vehicle. Between the age and mileage, the mileage affects the depreciation value more. Generally, cars travel around 10,000 and 15,000 each year. If you drive your car with more than the average, then your car will decrease its value faster than expected.
If the car has fewer miles, you will be able to soften the blow on the depreciation value. Imagine for a second that you are the buyer… would you buy a car with a mileage of over 500,000? Ideally, you would want to choose a car in excellent condition, which preferably has less than 100,000 of mileage.
The Car’s Condition
- Like in other things, you usually classify objects by rating it as either excellent, very good, good, fair, or acceptable. Obviously, you will have to spend more money on a car that looks pristine. However, according to the Kelley Blue Book website, cars in excellent condition are only less than 5%. So, you will mostly find satisfactory or decent looking car. That means if you want your car to stand out from the rest, it has to be in good working condition and the car should be well maintained.
- If your car looks shabby and run-down, you might as well give away your old and rusty car.
- Next, people also consider the options such engine type, transmission type, and all-wheel drive upgrades. Other upgrades like the seat cushion, GPS navigation device, automobile roof, and an automatic climate control system will make a huge difference.
- Let’s face it having add-ons will make a more visually pleasing. Going for a higher trim level will allow you to gain access to additional safety features, such as leather seating, powerful engine, an upgraded entertainment and navigation system. So, do your own research on what upgrades you prefer. Once you arrive at a car dealership, try to negotiate. Who knows you could pay an affordable price for a higher trim level?
- Lastly, the safety features are an important consideration. It will help increasing the resale value of your car, and at the same time, it will keep you safe. People tend to look for something that will keep them safe such as collision warnings, blind spot detection, and other warnings that can alert them of the impending danger.
Tips in Increasing Your Car’s Value
On my next post, I will talk about how you can increase the value of your car. To be honest, maintaining your car in excellent condition is a difficult task. You will need to exert time and effort. Additionally, car repairs won’t come cheap. At the end of the day, you would want to own a car that would last for a long time. To know more, refer to How To Increase Your Car’s Value (Part 1).