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Monday, September 5, 2011

Maintaining Resale Value

One of the things we hardly consider when making the choice to purchase a vehicle is what it will be worth when we are done with it.  Some of us are gifted in the vehicle resale field, but for a majority of us, reselling a vehicle yields a loss of money that can't be avoided.  Don't fret about it; losing money on a vehicle is a part of life.  The useful value of a car is outweighed by the loss of money that we experience when it is time to say goodbye.

Lessening the blow in the end is something that we can control, however.  Here are some tips that can earn you some extra money when it is time to sell.

1.  Keep it clean
     Keeping our vehicles clean can be a challenge sometimes.  Between commuting to work, school, daycare, getting groceries, and weekend cruising, our vehicles suffer from neglect from the daily grind.  Coffee cups, food bags, cigarette ashes, and dirty glass can adorn some of our vehicles.  Working in automotive salvage throughout the years I have bought several vehicles that were simply too dirty to sell.  They ran fine, but the cost to restore their interiors to a livable state would have far exceeded the value of the vehicle.
     Remember to keep your car clean and smelling good.  If you spill coffee on the carpet, it will clean up with just some regular automotive cleaners.  I recommend Simple Green.  Automotive carpet is nothing like house carpet.  If you spill red wine on automotive carpet, it will not stain like in the house.  Automotive carpet is made from polyester fibres and are not prone to staining from soaking and wicking.  A little maintenance goes a long way in this case.  As a smoker, I often light up in my car.  It's inevitable that ashes will make their way in to the carpet and seats, but a weekly vacuuming take care of that problem and keep my car smelling and looking new.

2.  Keep it maintained.
     Maintaining a vehicle is a small investment that can go a long way.  Aside from making your vehicle more reliable in the short run, it will keep it worth more in the long run.  When you buy a new vehicle, you'd like to see all of the maintenance records, right?  Keep your receipts to prove that maintenance has been performed. Even if you maintain your vehicle yourself, keep the receipts for the parts and record the mileage on the receipt at the time of maintenance.  This goes a long way for the savvy buyer.  He or she will know that they are getting the best deal on the car and that will, in turn, get you more money in the sale.
     Don't forget to fix things that break.  Maybe you can deal with that broken armrest or unbalanced tire, but the next person will seize that opportunity to lower the price so they can have the best deal possible.  You want to give the buyer the best deal possible while knowing that you're selling them a car that is free of defects and you can be proud that you've sold them a reliable, well maintained vehicle.

3.  Timing is everything
     Fuel prices are at an all-time high.  Here in Michigan, we have winters that are harsh on commuters and on cars.  Don't try to sell your 4x4 Chevy truck in the middle of summer because people will find this as an opportunity to buy it for rock-bottom pricing.  All it is worth in summer is the 12mpg.  In winter, however, it is worth the safety of 4x4.  You wouldn't try to sell your motorcycle in February, would you?
     Sell your vehicle in the appropriate season.  Trucks for winter, convertibles for summer, and always showcase the best trait for the season.  In August, when selling your Taurus, showcase that the A/C is cold as ice.  In January, showcase the front wheel drive and boiling hot heat.  People love to see the good in vehicles.

4.  Keep it simple.
     Aftermarket accessories will actually hinder many people from buying a vehicle.  Some are fine, such as a lift kit and roll bar on a nice 4x4 truck, but for the most part, people don't desire a bunch of personality.  Body kits, xenon lights, aftermarket taillights, and loud pipes on your Acura Integra might be fine for you, but for the next owner they might not be exactly what they want.  It's like selling your house painted lime green.  If you can find that right buyer it is okay, but for the majority of the population, they will prefer something more neutral that they can modify and personalize themselves.
     Keep your car stock and clean looking for the sale.  If you have already modified it, then there's not much that you can do about it at this time other than disclose the modifications and hope for the best.  Simple and stock always wins the car race.

Selling a car can be stressful, but the rewards are great if the vehicle is well maintained, clean, and known reliable.  As I have stressed before, when purchasing your new car, always check the value of it as to not get the shaft.  Edmunds.com and Caranddriver.com offer information about projected resale value of vehicles.  As a rule, imported cars hold value better than domestics, although some domestics hold their value better than others, while some imports tank over time.  Steer toward Honda, Toyota, Volvo, Nissan, BMW, and Volkswagen for the highest resale value.  Ford, Mazda, and General Motors vehicles are about average in projected resale, but steer away from Chrysler, Kia, Isuzu, and Mercedes-Benz for resale.  Depreciation is ungodly rapid on these.  If you like the car, then don't let resale bother you.  If you plan on keeping it for a couple of years and offing it, then consider projected resale when making a decision to buy.

As an example, in the last six years, my 2005 Mercedes-Benz C230 Kompressor has lost over $30,000 of value, while my 1993 Ford F-150 has only lost $8,000 in the last 18 years.

For any questions about reselling a vehicle, vehicle repair questions, or questions about cars in general, feel free to email me at DIYfixyourcar@gmail.com

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