Top Tips to Increase Your Car's Resale Value : Car resale tips

If you’re buying a new car, you’re probably looking to get the best resale value for your old car. In this blog, we discuss how your car’s resale value is determined and some top tips to increase car resale value. Armed with these, you can get the best value for your used car, whichever make and model it is.

Understanding Car Resale Value

The procedure of conducting a series of checks to determine the condition and fitness of the car, based on the various factors which are listed below, helps you understand the resale value of the car. These factors stand true for new cars, as well as second-hand cars.

How Car Resale Value is Calculated

The resale value of a car is determined by various factors ranging from factual aspects to perceived matters of importance. Factual aspects include things such as the age of the car, number of owners, city/state of registration, kilometres driven, make, model and variant, vehicle and tyre condition, visible damage, insurance cover, and availability of documented service history. Perceived matters affecting used car valuation include model popularity and history, brand value, the model generation of your car, how much current technology and trending features are present in it, and even the overall life remaining for that particular model should government norms restrict its usage. Look for quality used cars in your city on CARS24 to some great deals.

A car’s resale value is calculated primarily based on the factual aspects and then goes into further detail based on the secondary perceived factors.

Depreciation and Its Effect on Used Car Valuation

Depreciation is the periodic loss of value as the years pass. Most cars depreciate at a fixed rate, although there are exceptions to every rule.

Each year completed will see a depreciation of around 10 percent or more depending on other factual and perceived aspects we spoke about earlier. The standard calculation for a good used car in India if it is a popular model is 15 percent off the on-road price for the first year and 10 percent of the resultant figure for each passing year. If the model is still available, it adds to its value.

Here is an example of a used car valuation for a popular hatchback if sold after six years.

In the above illustration of used car valuation, we see that the car’s value has halved over six years. Of course, this second-hand car valuation stands true for most popular models. Some niche models from less popular brands can lose as much as half or more of their resale price in the first year itself. This is based on their reputation and availability of parts, among other factors.

Take the case of the Nissan Micra and its badge-engineered counterpart, the Renault Pulse. One can find amazing deals on used Nissan Micra cars on CARS24. The Renault Kwid is a more popular model and as such a higher number of used Renault Kwid options are available at attractive prices.

On the other hand, there are cars such as the first-generation Volkswagen Polo GT TSI. Some of these cars are 10 years old at this point, powered by a 1.2-litre four-cylinder, turbo-petrol engine mated to a 7-speed DSG dual-clutch automatic transmission. It still commands more value in the right circles than a five-year-old GT TSI with the 1.0-litre three-cylinder engine and 6-speed automatic gearbox. Find great deals on used Volkswagen Polo cars on CARS24.

How to Increase Resale Value of Car

There are some ways to ensure you get the best value for your car. Here are some top tips to maximize your car’s resale price.

1. Timely Service and Maintenance

Taking the time to ensure your car is adequately maintained makes a huge difference. Simply checking tyre pressure often, changing the oil and filters as required, and keeping the car clean can affect how the vehicle performs. Periodic service is also a necessity.

2. Use of Authorised Service Centres

Where the car is serviced matters as much as how timely the service is. Visiting an authorised brand workshop or reputed service centre improves a car’s resale value whereas getting cheap fixes at local mechanics will decrease it.

3. Service History

Having a record of the services your car has undergone and documented evidence in the form of bills and receipts establishes the maintenance schedule and also increases the resale value of the car.

4. Using Genuine Parts

Using original equipment or OEM parts and components means the warranty and insurance remain intact. It also keeps the car in better shape, thus increasing the car’s resale value. Visiting a local workshop and installing non-OEM parts as a quick fix may lead to complications that could hamper the running and the life of the car altogether.

5. Use Good Quality Fuel

An underrated but essential way to make sure your car stays in great mechanical condition is to fill it up with good-quality fuel. Avoid unknown fuel pumps where the possibility of adulterated fuel is higher.

6. Keep Insurance Current

Having the car’s insurance renewed on time has more benefits than one. The cover continues uninterrupted and if there are no incidents requiring an insurance claim, a no-claims bonus accumulates and increases over the years. The savings on premium paid can be as much as 50 percent.

7. Check and Rotate Tyres

A simple way to not just increase your car’s resale value but also improve performance and durability is to rotate the tyres once or twice a year, depending on running, to ensure even wear. If all four tyres are of the same size, it simply involves swapping tyres from back to front and left to right.

8. Paint and Underbody Protection

Paint protection film or ceramic coating and underbody treatment can help keep the car free from scratches, swirl marks, stone chips and rust spots. If your car looks as good as new, the resale value will be higher.

9. Protective Floor and Boot Mats

Using rubber floor mats or carpet mats in the footwells and in the boot can prevent unnecessary wear and tear on the original equipment. This directly affects how it appears and can increase a used car’s valuation.

10. Take Care of Small Problems Before They Become Big Problems

Does your car have a damaged headlight unit? Maybe there’s a cracked windshield or side window. Tend to these seemingly small issues before they lead to bigger problems. This will help ensure your car is in top condition and that you get the best resale price possible.

11. Car Colour

The colour of the car can be a factor in getting a good price for your car. Although it is a matter of taste, neutral colours such as white or silver are proven to have better resale value. This is based not just on taste but also on location and climate.

12. Buy a Used Car From a Reputed Reseller

Choosing where you buy your used car also ensures that many of the aforementioned needs are met. There will be a comprehensive service history and all necessary paperwork taken care of. There are a number of great deals on a used car from CARS24 with a huge choice of models in your city.

Common Car Resale Mistakes

There are many ways to get a good price for your used car. However, don’t make some of the common errors most people make when selling a car.

Get the Right Price for Your Used Car

Bargaining and low offers on price is common. Get a proper used car valuation done for your car on CARS24 to know your car's true worth. This also lets you know the important points to consider when selling your car. Besides, it will help you be aware of what to look out for if you are buying a used car.

Check the Paperwork

Don’t take things at face value. Even if you’re buying from someone you know and trust. Check the papers of the vehicle to make sure that the model and variant are what you’ve been told it is. Not all cars have variant badging or stickering and fewer still have (O) badging (for variants with optional features). Do your due checks to be sure.

Verify Service History

Check the details and cross-check with the car itself to make sure the parts and components billed are visibly in order. Any dent, bend, or change in paint shade may point to something not right.

Test-Drive the Car

Don’t be the victim of a lemon sale. Check the car thoroughly to ensure everything is in order. Lights, air-conditioning, music system, sunroof, power windows, central locking and other electronic features may develop issues. During the test drive, listen for sounds that could point to expensive repairs in the future – thuds from the suspension or wheels, screeching or knocking from the engine and rubbing or grinding noises when the steering is at full lock to either side. If you are buying or selling your car, go for a test drive with the prospective seller/buyer.

Conclusion

There are several ways to increase your car’s resale value. Most involve being aware of maintenance and nipping small issues in the bud. Taking care of your car and keeping it serviced and clean can go a long way towards getting the best value for your used car.