Many choose to buy a car to fulfill a dream, or for practical reasons like personal transport. However, if you buy a vehicle intending to sell while it can still fetch you a high price, there are some things you can do to slow its depreciation and even increase car value before you put it up for sale.
In this blog, we’ll briefly talk about depreciation and what you can do to slow your car’s devaluation; and when it’s time to sell, tips on how to raise its market value.
The Truth About Car Depreciation
One of the first things car buyers should know is that the value of a car decreases from the moment you drive out of the dealership. The rule of thumb is that a car’s market value goes down by 9-11 percent upon leaving the lot.
By the end of the first year, its value will have decreased further by 20 percent. After that, the depreciation slows in the next four years. By the fifth year, your new car will only be worth 60 percent of its original value.
Depreciation will be an obstacle if you want to sell high enough to afford the downpayment on your next brand-new car. Unfortunately, there is no stopping depreciation. Therefore, it’s only natural for your vehicle’s price to decrease by the time you put it on the market.
So, how do you make the most of your car and sell it at a higher price?
Tips to Increase Car Value Before Selling
Similar to flipping houses and doing structural and cosmetic repairs on properties before selling, car sellers also need to do some prepping before selling second-hand vehicles to merit a higher asking price.
When you find yourself thinking, “It’s time to sell my car,” consider making these affordable improvements first:
- Polish your car to a shine.
You may be able to get away with semi-faded paint if you buff and polish your car to a brilliant shine. Waxing and polishing can be help preserve a car’s exterior. A complete paint job will be costly, so you may want to consider it only if the paint is severely chipped and visibly faded. You can recoup the repaint cost, but it might be a problem if you don’t have cash on hand to pay for it upfront.
- Fix minor dents and scratches.
Fixing minor dents helps preserve the resale value of your car. You can also polish shallow but visible scratches using DIY kits. Remember, second-hand car buyers will look for flaws with which they can bargain sale prices, so it helps to fix as many of them as possible.
- Clean the undercarriage and grills.
Ensure that your car is cleaned thoroughly, including its underside. Seasoned buyers won’t like unkept undercarriages because grime can hide significant defects like extensive rusting and signs of sloppy repairs. Clean the exterior accessories, too, like the grills and cargo rack. Finally, polish the headlights. Grimy headlights can make a car look older and more worn than it is.
- Clean the car seats.
Vacuum and deep-clean the car seats and focus on removing embedded dust, stains, and foul odors. Have the seat covers professionally washed, preferably by a company with experience in handling car upholstery. Next, vacuum the felt lining on the roof and use non-toxic stain remover on visible pen marks or any visible stains on the doors and dashboard. Finally, empty all compartments of trash and accumulated dust.
- Replace damaged interior mats.
If your floor mats are still in good condition, you can pressure wash and dry them out. However, if the treads are worn out, the edges are frayed, or if there are holes anywhere on them, it would be better to buy new ones for replacement. Ensuring the interiors are in good condition will make interested buyers feel like they’re sitting in a relatively new car, which can help them make the purchase decision.
- Replace broken tail lights, headlights and interior lights.
Broken taillights and headlights can get you pulled over, so that will be a priority check for buyers. Replacing these lights doesn’t cost a fortune, but fixing them at a shop is still a hassle. Knowing they need to do it themselves might also turn some buyers off. Lastly, broken headlights give buyers the confidence to bargain for a lower price, so repairing them is a must.
- Have the AC, car stereo, and engine checked.
Notice that this is a recommendation for diagnostics, not full-on repairs. This is because it will cost you hundreds or thousands of dollars to get a broken AC and stereo working again. If there is a big problem with the engine, it might take a lot of time and money to fix everything and get a buyer to consider a higher price. It’s better to be honest about these things and let a buyer decide make an offer.
- Do some minor repairs and replacements.
The tires, brake pads, and transmission usually wear out the earliest, so replacing them with brand-new ones is good practice. Each replacement is one less thing the buyer would have to do himself, so they usually help increase a second-hand car’s price.
- Prepare records of repairs and maintenance.
In case your most eager prospects are skeptical about how well you cared for the car while in your possession, make sure to present records of the repairs and maintenance work done on your car since its purchase. It’s also a show of good faith to reveal any significant issues you experienced with the vehicle. While that doesn’t seem ideal, any buyer would appreciate the full disclosure and be more inclined to trust you as a seller.
How to Minimize Car Depreciation
Car depreciation is inevitable, but you can take measures to slow or limit its impact on your car’s market value. Here are some tips on reducing your car’s depreciation rate while you’re still using it:
- Have your car regularly checked and maintained.
- Keep a log of all maintenance records and repairs.
- Change your oil every 5,000 to 7,000 miles and replace the filter when necessary.
- Be a gentle driver. Avoid rough roads whenever possible.
- Avoid eating inside your car.
- Only carry drinks in a sealed bottle or tumbler.
- Do not smoke inside your car.
- Be careful with interior features like drink trays, adjustable AC vents, sun visors, etc.
- Park your car in an enclosed garage. At the very least, pick a roofed area as your regular parking spot.
- Keep a plastic tray in the backseat for wet umbrellas, raincoats, leaky grocery bags, and any cargo that might stain or drench your carpet.
- Use a fresh scent inside your car.
- Don’t drive when you can walk to your next destination (to keep the mileage low).
Caring for your car will preserve much of its value and keep any issues that may arise by the time you sell to a minimum.
Get an Ideal Offer on Your Car Through GiveMeTheVin
Besides investing in affordable repairs to increase car value and ensure it’s in top shape, you also have to look for interested buyers. Following the tips above will help tip the scales in your favor, increase your car’s selling price, and make it more attractive to buyers.
To make your car selling experience as hassle-free as possible, get in touch with GiveMeTheVin, America’s best online car buying service. GiveMeTheVin has a team of buyers who will talk directly to you and give a competitive offer for your car. Then, if you agree to the deal, the company will pick up your vehicle from your home or garage.
Whether you bought a car to sell later or want to sell your car now because of urgent financial needs, GiveMeTheVin can give an irresistible offer. Contact us to get a bid offer.
