The resale value of your car is influenced by a combination of factors, primarily falling into two categories: the vehicle itself and market dynamics. Varying from the make, model, and variant, as well as its colour, all the way to its condition and service history, will determine what a dealer or reseller is prepared to offer you.
Related: How to sell a used car in South Africa
On the other hand, market dynamics such as current demand, resale pricing, and consumer preferences will also influence what dealers and resellers can offer for your trade-in. Let's examine these factors more closely and identify areas for improvement and those that are beyond our control.
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Vehicle-Specific Factors
Condition (physical and mechanical):
The overall state of the car, including the exterior (i.e., paint, dents, scratches), and the interior regarding cleanliness, tears, wear, and mechanical components. A well-maintained car free of damage or known issues will command a higher price.
Mileage:
Generally, lower mileage relative to the car's age leads to a higher resale value, indicating less wear and tear. High mileage suggests more potential for future repairs.
Age:
The older a car is, the more it typically depreciates. Depreciation is steepest in the first few years of ownership.
Maintenance and service history:
Complete, documented service records that show regular maintenance and timely repairs prove the car has been properly cared for, building buyer confidence and increasing its value.
Accident history:
A car that has been in an accident, especially a major one, or has a negative history report, such as flood damage or a salvage title, will have a significantly lower value, even after being repaired.
Number of owners:
Cars with fewer previous owners often retain more value, as buyers prefer vehicles with a simpler, less-used history.
Colour and options/features:
Colour: Neutral, popular colours (like black, white, silver, grey) tend to sell faster and hold value better than very bright or unique colours.
Features: Desirable factory options or modern technology, such as advanced safety systems, premium sound, or popular powertrains like diesel or all-wheel drive, depending on the model, can positively influence value.
Modifications:
Excessive or highly personalised aftermarket modifications, such as spoilers, loud exhausts, or non-standard rims, often decrease resale value, as they appeal to a narrower audience and may raise concerns about the quality of the work.
Market and model factors
Make and model popularity/reputation:
Brands and models known for reliability, durability, and low maintenance costs (e.g., certain Toyota or Honda models) typically hold their value better.
High demand for specific models like popular SUVs or bakkies in the used market helps slow down depreciation.
Fuel economy:
Depending on current trends, buyers are often more attracted to vehicles with good fuel efficiency or desirable alternative powertrains like hybrids or electric vehicles.
Model year redesigns:
When a manufacturer releases a significantly redesigned model, the resale value of the older version often drops.
Market Conditions and Location:
General economic conditions and local market demand, such as the demand for bakkies in rural areas, can cause prices to fluctuate.
In Conclusion
By considering the above, you will be able to ensure that your vehicle is in the best condition for sale and, to some extent, what you can expect when you do sell. This will also help you when buying your next car, keeping in mind what will cause its value to either increase or decrease.
