Practical tips when buying a vehicle
Finally, consider the resale value of your car
It can be tricky to know the resale value of a car since the only thing you know for sure is that you’re going to have to sell it for a lower price than what you paid for it.
In general, the value of your car can drop by 20-30%, even if it’s only a few months old. This is simply because most people would rather have a new car and enjoy the benefits. But you want to make sure you get the best deal because the amount you get from selling your car can help you with the down payment for your next car.
Here are some of the things that could affect the resale value of your car that you should keep in mind before buying and while owning the car:
The car’s make and model
Different vehicle brands and models depreciate differently, meaning that two cars of different models but with the same price (for a new car) might have different resale values.
Modifications, accessories, and your car colour
Your tastes when it comes to a car’s modifications, accessories, and even its colour might not be the same as that of the buyers’. Anything out of the ordinary could make your vehicle harder to sell and decrease its resale value.
How well you maintained your vehicle
Some key questions to ask yourself: Have you serviced your car regularly? Did you keep records of your servicing? Keep your servicing receipts!
The condition of your vehicle
How does the vehicle look? Is there any damage to the exterior, like dents? How well-maintained are the exterior and interior of the car?
Any major accidents
Your vehicle’s resale value would drop if you’ve been involved in any major accidents that might have caused damage to its structure.
As a general guide, the higher the mileage (meaning the more it’s been used), the lower the resale value.
The age of the vehicle
The older the vehicle, the lower its resale value.
And of course, supply and demand
It might be challenging to find a buyer if there’s already a newer, cheaper model in the market that matches your car’s specifications. This means there’ll be lower demand for your car and a lower resale price.