How to increase the resale value of your car

While cars typically depreciate over time, there are steps you can take to maximise your car’s resale value. This could help put more cash back into your pocket when you sell, which could make it easier to buy your next car.

Why do cars lose value?

While some assets such as real estate tend to grow or appreciate in value over time (though this is not guaranteed), cars instead tend to lose or depreciate in value over time. This is partically because cars experience wear and tear through everyday use. Even with care and regular servicing, a car has a limited lifespan, and will eventually break down permanently.

The exception can sometimes be classic cars and vintage vehicles. When properly maintained and restored, these cars can sometimes rise in value. Of course, you’re more likely to find buyers among the relatively small community of vintage car enthusiasts and collectors, and these vehicles often can only be driven to car shows and similar exhibitions.

Tips to improve your used car’s resale value

Regular maintenance

Keeping up with your car’s scheduled servicing can help keep it running more smoothly for longer, and hopefully spot any potential issues before they happen. Plus, being able to show a potential buyer a logbook with an up to date service history can fill them with confidence about your used car.

Fix cosmetic imperfections

Small dents and scratches may not affect a car’s performance, but they could lower the car’s value in a potential buyer’s eyes. Fixing dents and buffing out scratches can help to enhance a car’s presentation, and thus its potential appeal to buyers.

Cleaning and detailing

Presentation can be important when selling a car. Keeping both the car’s exterior and interior up to the standard of a new car can help encourage buyers to pay something closer to a new car price.

Protect your vehicle

If possible, try to avoid parking your car outdoors in locations where it’s exposed to leaves, debris and bird droppings. Even if you clean your car regularly, these can leave lasting marks on your vehicle’s finish, which could affect its presentation to new buyers and its perceived value.

Change the tyres

A savvy buyer may be put off if your vehicle’s tyres are on the worn side, as replacing them can be an expensive hassle, especially if you’ve just spent a lot of money buying a car. You could consider replacing your old tyres with new ones to give potential buyers peace of mind.

Avoid smoking in the car

Tobacco scents can linger in your car’s upholstery, even after deep cleaning and thorough deodorising, which could put off some buyers.

Minimise your mileage

If it’s possible to limit the number of kilometres you drive, this could help to improve a car’s trade value. The more kilometres clocked up on a car’s odometer, the more wear and tear it may have experienced, and the more likely it is to break down some time in the future. The drop-off in resale value can be especially noticeable once you pass the 100,000 km mark.

Stick to the basics

While you may appreciate flash optional extras, paint jobs and mods, these could limit your car’s appeal to future buyers. You may be able to cast a wider net and appeal to a greater variety of buyers by sticking to more basic options and removing modifications and optional extras.

Sell sooner

A car’s value depreciates over time, with some experts noticing a sharp decrease in a used car's trade value once a vehicle passes the five-year mark. If you think you may need to sell your car in the future, you may get a better resale value by selling within the first four years. And if the car is still under its manufacturer’s warranty, that could be even better for a buyer.

Update the electronics

It’s possible to bring older cars up to a similar standard as newer cars by upgrading their consoles. Replacing an old AM/FM radio with digital radio, and adding smartphone connectivity, navigation and safety features could potentially add extra appeal to an older car.

No dogs allowed

Your pet pooch may be loveable, but their hair and the smell of wet dog they leave behind may not. It may be hard to fully clean a car of dog traces, which could be a turn-off for some buyers.

Check for recalls

Sometimes car manufacturers issue recalls for specific vehicle models due to faults or other dangers. If an active recall is out for your car, it’s unlikely to sell for a lot of money until the issue is fixed.

Take nice photos

If you’re selling a car online, high quality photos of your vehicle can really make it stand out, attracting more buyers who may compete with one another to push up the price.

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