Except for purchasing a house and paying for tertiary education, investing in a car is one of the more significant purchases you make.
Therefore, most car owners are interested in maintaining the value of their vehicles.
Cars are assets whose value begins depreciating the moment you take delivery of it or drive it out of the dealership—looking after your vehicle becomes even more critical to maintain as much value as possible.
We will take a few moments to look at how to maintain your car’s residual value.
Buy the Right Vehicle
The process of maximizing the resale value of your car begins the moment you decide to invest in one; there are a lot of factors to consider when choosing a vehicle that holds value well.
Try choosing a vehicle whose demand exceeds or is equal to production and one that is relatively popular with consumers. Compare car loans as well if you are looking for finance to ensure you come out with a repayment schedule to suit your budget.
Manufacturers tend to sell off excess models of a car to rental companies which may taint the reputation of your vehicle.
Maintenance
Now that you have settled on the ideal vehicle that meets your needs, maintenance is essential.
Maintaining your car regularly will ensure that everything is in order while also leaving no significant issues to deal with when you place your automobile on the market.
Engine, tyres, and paintwork are to be kept in pristine condition to maximize the value of your car when it comes to reselling.
Mileage
The more the mileage on your vehicle, the less its perceived worth will be. If you own a car for 30 months and during that time you have driven 100,000 kilometers, it will send a negative message to potential buyers, resulting in low bids for the car.
Do not drive your vehicle if you do not have to. Does your area have a decent public transport system? Can you walk, bike or carpool to destinations? If yes, consider alternatives to driving everywhere.
Car Wraps
Recently car wrapping gained more prominence in Australia. Covering your vehicle in the vinyl film will improve the look of your automobile while also protecting it, further helping maintain its value.
Wrapping your vehicle can also serve as a cheaper advertisement for businesses. When you order specially painted cars, you can design and choose the colours for your car wrap.
Consider Leasing
Purchasing outright is not the only option available to you when purchasing a vehicle. Leasing is a reasonable alternative to buying.
When leasing, you are practically paying for a vehicle’s depreciation, interest and tax. As soon as your lease term comes to an end, you can upgrade your car without going through the process of selling your vehicle.
Leasing a vehicle can give you a lot more options.
Private Sale
When ready to sell your car, there are generally two options; you can trade it in or sell it privately.
More often than not, dealerships will buy vehicles at a price lower than their market value because they still have to invest in reconditioning and then selling the car.
As long as you do not mind the stress of marketing and preparing your car, you can get more when you are ready to sell if you sell privately.
Sheltered Parking
We live in a country that has a lot of sunny days, and extreme weather conditions like rain, hail and sun. These extremes will leave a slow but evident impression on your automobile.
The same way we go about protecting our skin from the elements, we should consider similarly protecting our vehicles.
Consider parking your car in a garage, shades, and the likes to maintain its paintwork and other aspects from sun damage.