What Hurts Your Car’s Resale Value?
In almost all cases, a car is a depreciating asset. Its value is headed south the minute you drive off the dealership lot. That’s even if you take good care of it, but a car’s resale value can drop even faster if you don’t.
David Wurster, president of Vincentric, a company that provides car-valuation data, shared things that especially hurt a car’s resale value:
- Excessive damage can be either mechanical or cosmetic. If a buyer would have to fix the damage, it’s excessive.
- High mileage is a huge factor that hurts resale value. If you’re shopping for a used car, you also have to be wary if the mileage is extremely low. It may hint at an underlying problem with the car. Determining the typical mileage for a car you’re considering could help you avoid unexpected maintenance in the future.
- A history of problems or damage is an important determining factor, too. Recurring problems are always a red flag, and so is accident damage.
- A car that’s in poor condition will have a lower resale value. If it’s in rough cosmetic or mechanical shape and needs to be reconditioned but hasn’t been, that extra cost has just been passed to the next owner.
- Wrong market conditions can affect the value of specialty cars. Convertibles, for example, will have a lower value in the fall and winter months. A thirsty full-size SUV will be worth less when gas prices are high.