Owning a car can be costly as most cars tend to depreciate with time and use. This implies that the value of your car is likely to decrease the longer you possess and drive it. Nonetheless, there are steps you can take to prevent its value from decreasing more than absolutely necessary.

While factors such as market conditions, demand and other factors can impact the final resale value, it is important to manage what’s in our control in the vehicle ownership journey, said WesBank.

The credit provider also highlighted some of the key factors that affect the resale value of cars with the aim of helping motorists get the best value when the time comes to sell or trade in.

Before looking at the factors more closely, Wesbank noted it is important to understand some of the most common terminology used by the motor industry as follows:

• Retail price: This is the recommended sale price, not inclusive of the extras on the vehicle or the consumer demand. Dealerships incur costs of running businesses such as marketing, insurance, vehicle reconditioning and repairs, facility overheads and staff remuneration. Naturally, a dealer needs to factor some profit into vehicle prices, so retail values are normally at the higher end of the scale. This is the price you can expect to pay when acquiring a new vehicle. Any additional aftermarket extras can void the warranty of the vehicle. Therefore, it is advisable to purchase additional accessories directly from the dealer to avoid this.

• Trade/market price: This is always lower than the retail value. It’s the recommended trade price for a vehicle in good condition – these values may also vary in line with vehicle demands. This is the value that should be considered when trading in or selling your vehicle.

• Depreciation: The reduction in the value of an asset over time due to factors such as mileage and wear and tear.

According to WesBank, the factors that could impact the resale value of your car are listed below.

---

Doing your homework

The first thing that could impact the resale value of your car is doing some homework ahead of committing to a purchase, which can pay off down the line when it’s time to sell a car.

Consider the historical market demand for a vehicle; for example, is the two-door or four-door model more popular? Is automatic preferred to manual? Diesel or petrol? Used car websites can be extremely valuable for researching which vehicles are the most popular and which have held their value more over time.

---

Colour

Consider exterior colour and interior trim options. Where luminous orange and acid green may be desirable on a supercar, it may not be on a budget hatchback.

Likewise, beige cloth seats might pose a problem when it’s time to sell later, whereas black leather might be more appealing. Keep in mind that, generally, neutral colours sell better.

---

Mileage

Variables such as mileage will also affect resale value. It can be tempting to consider a bargain deal on a particular vehicle because it has high mileage, however, this could prove a costly error down the line as the vehicle will likely require ongoing maintenance, especially if you drive it often, and it may be worth far less when you want to resell it one day.

One of the first things a dealer looks at when assessing the trade-in value of a vehicle is the odometer reading, and if it’s very high, you can expect relatively low offers.

---

Service intervals

It is also important to ensure the vehicle is serviced as per the manufacturer’s stipulated service intervals. The franchised dealer must have the necessary training to keep the car in running order.

Dealers often first look at whether the vehicle had regular maintenance with consistent service trips.

This will reassure the dealer that the vehicle has been taken care of and that there is a less likely risk of finding anything wrong with the inner workings of the vehicle.

---

Condition

Keeping your car clean and in tip-top shape is probably the best way of ensuring it retains value over the years. That small scratch might not be a big deal now, but accumulating many small scratches will detract from a car’s appeal when it’s time to sell.

Do your best to keep the appearance and mechanical condition of your car as clean and neat as possible during your ownership cycle.

---

Aftermarket accessories

Try to resist overdoing it with aftermarket accessories. Part of the joy of owning a car is making it your own, often with personal style additions. However, this can have an extremely negative impact on its resale value, especially when some custom add-ons are permanent.

You may see your oversized rims, outrageous body kit and major stereo system as improvements, but it’s almost guaranteed that the next owner or, more importantly, the dealer whom you ultimately trade in with may not.

Owning and driving a car should be a fun and rewarding experience. By being aware of the factors above and maintaining the condition of your car, the rewarding experience can last right up until the day you sell or trade your vehicle in.

---

Read: New bakkie launches in South Africa – features and pricing