Get the best used car value
Tuesday 31 August 2010
More than a third of buyers don’t research a car’s potential future value before buying it, according to a survey conducted by BMW Financial Services.
The survey found 38 per cent of motorists failed to consider used values before buying a new car, despite 74 per cent of drivers saying the future value would “play an important factor in their choice of motor”.
Joe Pattinson of BMW Financial Services, said: “As with certain improvements to a home, improvements to a vehicle can make a big difference when it comes to selling it on. And yet as our research findings have shown, there is a significant amount of misunderstanding about what may enhance a car’s future value, and what will not.”
“For example, many people thought a tracker system would most enhance a car’s future possible value. In reality, while the enhanced security offered by a tracker system may mean lower insurance premiums, a car fitted with a tracker will not attract a higher resale price than a car without.
“In contrast, many people felt an electric sunroof would least enhance a car’s resale value, whereas for many cars a panoramic glass roof will have a significant positive impact on its resale price. Motorists did however correctly identify that leather interiors are likely to add to a car’s future value.”
The research also showed 44 per cent of motorists would customise a new car to their own specification, with 48 per cent saying they would be prepared to pay for added extras if they thought it would help increase the car’s future value.
How do you estimate a car’s future value?
• Contact the manufacturer to ask for a model’s expected future value (residual value)
• Check the value of similar three-year-old models advertised for sale on Auto Trader – this should give you a rough indicator of your car’s future value
What affects used car values?
• Make and model
• Age
• Mileage
• Equipment, such as air-conditioning and alloy wheels
• Overall condition
• Colour
• Rarity of model
• Gearbox, e.g. automatic models are usually worth more than a manual
• Bodystyles, e.g. a five-door or estate is usually worth more than an equivalent three-door model
How Auto Trader can help:
Choosing the right car
Value a car
Sell your car
Car reviews