The same 'pal' who took you and your family on memorable trips, who helped during the children's school-drop routine, whose photo is probably posted on social media websites with friends seated on the bonnet.
However, putting sentiments aside, you might be headed for a tough last ride with your vehicle. Ensure to keep the following points in mind to keep your car in good shape.
Here's what brings your resale value down:
Few things that affects the resale value of your car:
1. Absence of service records, irregular maintenance, poor looks
If you've neglected to safeguard all your car servicing records over the years, it may well be a costly lapse. A potential new owner would like to feel that the vehicle he's looking to buy has been single-owner driven, serviced at regular intervals and generally been treated with care. Nobody wants to be seen with a used car that loudly proclaims that it's a 'used' car.
Driving in tough city conditions, say, monsoon rains and poor roads must have an effect on your vehicle. If you were a careful driver and not succumbed to ego-clashes on the road, chances are you'd have preserved the looks of your car.
If you weren't really a careful driver, given to a bit of bravado, and didn't mind the odd nicks and scratches, you should be prepared for a lesser value on your car. Repairing the dents and scratches as far as feasible will help. Also, boisterous children in the back or generally untidy usage reflected by seat stains for instance, can lower the value of your car.
2. Customising your car
Imaginative innovations may have been part of the in-thing some time ago, but tend to have a negative impact, i.e. wear-and-tear. Also, the new owner might have misgivings about the impact of such installations (a new, larger fender, for example, might not really suit the car).
3. The mileage factor
Generally speaking, the more the kilometres done, the lower the value of the car. All of 100,000 kms may be a landmark you will recall fondly including the several interstate trips, but it's unlikely to bring a smile to the face of the new buyer or dealer who's doing the re-selling.
4. Outstation registration costs more
Re-registration can be costly and a purchaser may often prefer a car that is registered in the same State where he lives. An 'out-station' car's residual value will most likely come down even if you've got a No Objection Certificate from the relevant Regional Transport Officer.
5. Market conditions and your car model
If your car is the same make/model as one that's popular in the market now, you could get a higher resale value. If it isn't, you could be facing difficult market conditions because a new purchaser can be hard to come by. While not a rule, some vehicles/models depreciate quicker because of market forces.
Be careful and buy car insurance. Not only because it's required by law, but because through insurance, you can take care of your car for its resale as well.
Three tips to reverse this
Here are 3 things you can do to protect the resale value of your four-wheeler:
- Stick to regular servicing and document everything: Follow the service schedule prescribed in your owner's manual. Keep a file with service receipts, major repairs and battery or tyre replacements. It also strengthens buyers’ trust and helps your case during negotiations about the price in the resale.
- Avoid unnecessary modifications: Unless you are in a niche enthusiast market, it is best to keep your car as close to original condition as possible. If you have made any changes, declare them to your car insurance plan provider so your comprehensive car insurance remains valid and transparent.
- Invest in protection and presentation: A ceramic coating or regular polish can keep your car’s exterior looking fresh. Clean your car thoroughly before listing it for sale and take high-quality photos to create a strong first impression online.
Conclusion
Your car’s resale value does not just depend on its age or brand. It is also decided by how well you care for it, the records you maintain and how buyer-friendly your decisions have been. By staying proactive with maintenance, keeping documentation in place and choosing comprehensive car insurance, you can ensure that your vehicle fetches a better price. After all, a car that looks good, runs well and comes with all the right paperwork will always be in demand.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information