Car values often fluctuate up and down throughout the year, and there are several factors that can affect how much your car is worth. Such as…
General age depreciation is usually the most impactful cause of a car losing its value over time. In many cases, a brand new car can lose as much as 35% of its initial value in the first year of ownership, and up to 50% over a period of three years.
However, certain makes and models suffer from age depreciation less than others, with some cars only suffering a depreciation of 15% in the first year.
It’s fair to say that anyone looking to buy a used car would want a good idea of how well the car has been looked after in the past, and most of this information comes from a vehicle’s service history log. The more information a buyer can have about the detailed service history of a car; the more confidence they can have when it comes to offering a fair price.
To be sure you can sell your vehicle for the best possible price, it’s worthwhile keeping all MOT & service documents, particularly if your vehicle has a full ‘approved’ service history from the car’s manufacturer.
From a buyer’s perspective, mileage is an indication of how much a car has been used in relation to the year the car was made. For example, if a car that is 3 years old has a total mileage of 75,000 miles, we can deduct that the vehicle has travelled 25,000 miles a year, on average. This is more than 3 times the UK average figure, and therefore the car would be worth less at resale as a result.
In most cases, the fewer total miles a car has accumulated over the years, the more value it will ultimately retain in this area, so striving to keep the mileage down when possible is a good way to hold on to your car’s value.
Car Size and Category
This is a lesser known fact, but the size and category of a vehicle can have a bearing on its resale value. Bigger cars such as 4x4s, or pricier luxury models often depreciate at a faster rate than smaller standard vehicles.
The main reason for this is down to the running and maintenance costs that come with these vehicles; not only do they require a lot more fuel over the years than vehicles with smaller engines, but they are often expected to be taken for more expensive ‘approved’ services each year.
These factors can make the car less appealing to a potential buyer during resale, and can therefore impact on the market value of a vehicle.
Selling a vehicle that has an outstanding warranty from the manufacturer often results in a better price when calculating car value. Most cars have a standard manufacturer warranty of 3 years, but it’s becoming increasingly common for new cars to come with an extended warranty of up to 7 years.
This means it’s certainly worth checking the details of your initial warranty guarantee, it could well be an added bonus to the buyer and help you gain a higher vehicle valuation in the meantime.