Resale value of a used car determines the benefit or potential loss you get from selling your used car. The used car market is full of similar cars but they are not same in real. The condition of used cars makes them different from each other even if they look same and are of the same brand and model. Some used cars are driven with care and that shows in their condition while others are driven aggressively in a rugged manner and that too shows in their condition when they are brought to the used car market. No two used cars in used cars market can be same and that determines the resale value of a car. You need to keep your car in a good condition and take care of a number of factors to get a reasonable resale value for it.
There are many factors which count for the better resale value of a car and we shall discuss them all here in this blog.
Original Documentation and Service Record
Original Documentation of a car is an important facet of selling a used car in the UAE and even elsewhere in the world. No buyer would buy a car that has either incomplete documentation or if there is some illegality found in the documents. You need to keep registration documents, insurance documents (if insurance has not expired), car manual and other related documents of your car ready at the time of sales as it directly impacts resale value of your car. You can get the best resale value for your car with its original documents. Other than the original documents, service record of a car matters as well. It tells buyers how consistently or inconsistently a car has been maintained throughout the years of your use and this directly influences resale price of a car.
Mileage Covered by a Used Car
Mileage of your car also contributes in determining its resale price. Lesser, the mileage of a car, larger will be its resale value. If you have made your mind to ultimately change your car, it is advised not to wait for too long to make a final decision as it will make the car cover more miles hence decreasing its resale price.
Condition of the Car
Both the apparent look of a car and its mechanical condition has a role to play when it comes to determining resale value of a car. You need to check the following elements of a car carefully before putting it on sale:
- Lights
- Cracks and Chips on Windshield
- Tyres
- Brakes
- Dents & Scratches
If you find any of the above not in good condition or see evident dents and scratches on your car’s body, it is advised to go for a complete maintenance job before selling the car.
In mechanical aspects, you need to take care of the following:
- Exhaust System of the Car
- Suspension
- Any Oil Leakage Signs
- Working of Air Conditioner
- Noise coming out engine
If you detect any of above-mentioned elements going out of order or see your engine not performing up to the mark, it is suggested not to rush with the sale and get done with mechanical service of your car first. It will have a big impact on improving resale value of your car.
Related blog: Annual Car Maintenance Guide
Collision and Repairs Received by a Car
It is another important factor that determines whether your car will sell well or have a low resale value. Cars with more repairs and heavy collisions usually have a lower resale value while cars with least number of repairs and accidents automatically receive better value from the buyers.
Customizations
Car customizations ranging from changing original color of a car to making alterations in car tyres and overall interior and exterior body have a great impact in determining the resale value of a car. While some customizations like adding a body kit to the car are good, most of them are bad as they lower resale value of a car. The buyers are most likely to pay for original built and color of car than for any exaggerated customization.
Demand & Supply
Demand and Supply of cars usually have the most fundamental part to play in determining price of a used car. Vehicles with limited editions and special models usually have a higher demand in the market so they acquire a better resale value than others. Other than that, different car markets around the world have different interests of buyers and that clearly gives edge to certain cars over others. In the UAE, there is a high demand for SUVs and sedans so they also enjoy a better resale value.
Reputation of a Brand
The reliability built by a specific brand in a specific car market impacts resale value of car in an influential manner. Some car manufacturers put more focus on engineering cars which offer the local customers better quality and reliability and that is what makes them favorite among the people. Brands like Toyota, Nissan, BMW, Mercedes and Ford have a better resale value in the UAE as compared to others as they have grown their reliability in the UAE over the years.
Know the Right Time to Sell Your Car
Keeping in view all the above factors mentioned throughout this blog, it becomes highly noticeable that selling a used car at right time is very important to get the best value for it. For this purpose, you must stay updated with the latest car market trends and also keep a check on maintenance costs of your vehicle. You must sell your used car if its maintenance cost starts exceeding the resale value of it. You should actually not bring it to such a point and sell it in most suitable condition to get a reasonable resale value for it. Having a good knowledge of all factors impacting the resale value of your car helps you decide the right time to sell your own used car and buy a new one.
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