Statistics show that around 40.8 million slightly used cars are sold in the U.S. in 2019 as compared to the 17 million new light trucks and cars sold in the same year. It is not surprising given that the average selling price of used vehicles is only around 21,000 USD, whereas new automobiles are 16 USD more expensive.
A brand new vehicle’s value depreciates the moment you drive it off the lot. A year after their purchase, most cars lose 5 percent of their value, then another 10 percent every year thereafter. However, this is not an absolute rule. Some factors can cause a vehicle to retain its value or even increase it over time.
Can a Car’s Value Increase Over Time
As a general rule, every car depreciates over time. However, as mentioned, some factors help boost a vehicle’s value. Some cars have the reputation of reliability thus they depreciate slower. Vehicles with a make and model recognized for their longevity and durability tend to enjoy an increase in demand which naturally leads to an increase in value.
Buyers are more willing to spend more cash when they know a car can last for a longer period of time as this allows them to save more money, making it a worthwhile investment. Fun and fancy cars tend to appreciate more as well over time. They are popular not for their functionality, but because they are unique and historical.
Some cars are also more valuable than others because they are of rare make and model. A good example of this is the 2013 Lamborghini Veneno, with only 5 made, making each car costs around $4.5 million each. Nonetheless, the condition and ownership of a vehicle have a significance to its value.
A car with low mileage, pristine interior, and fewer previous owners can help increase the price buyers are willing to splurge. With all these said, here are some easy fixes to boost your car’s value:
#1 Regular Cleaning and Maintenance
A simple job of cleaning your car interior could also do the trick of increasing your vehicle’s value. Take out those removable floor mats and clean them if they are still cleanable. But if they have severe stains and holes, consider replacing them with new ones. An attractive new set of floor mats are not costly, anyway.
When cleaning the rest of the interior, opt to use cleaners made for the job since the materials inside your car are different from the ones you have at home. Invest as well on some minor and easy fixes such as burned-out head or tail light and worn-out grill.
#2 Get Paperworks in Order
Taking care of your vehicle does not stop with regular cleaning and maintenance. Serious second-hand car buyers would naturally want to know the detailed history of the vehicle they are buying. Thus, you need to keep maintenance and repair records of your car.
Apart from providing detailed evidence, having an organized record shows that you truly cared about your vehicle. Doing this will significantly boost your asking price for the car as buyers are ensured that the vehicle they are purchasing is in good condition.
#3 Paint Job Could Do the Trick
Colors do matter. If your car’s paint has become so faded, consider hiring a pro or working with a trusted company, such as Auto Armour PPF, to bring back its old glamour and shine. Repainting your car not only makes it look brand new but also significantly enhances the durability of its exterior.
If it is beyond your budget to get a paint job, you may just simply opt to break out the wax and polish your car to give it some shine. Though waxing and shining can never completely turn your vehicle to its original color, it helps make your car more presentable.
#4 Consider Hiring a Pro
If your vehicle is worth more than $40,000, you might want to consider paying a pro auto detailer to have it deep cleaned and revamped thoroughly. A car with an already expensive value could significantly depreciate if buyers see that it is not maintained well.
Thus, spending a few more dollars is a worthwhile investment as you can ask for a higher price. Also, consider keeping parts that came in with your vehicles, such as parcel shelves, spare wheels, and tool kit. Anyone who knows what they are talking about is more willing to pay more with these add-ons.
Considering all of these, a car’s value will eventually depreciate over time. But with the above-mentioned suggestions, you may prolong its value or increase it for some time. Keep in mind though to do these suggestions properly as a poorly done bodywork could depreciate instead your car’s value.