When determining the value of a used car whether for a trade-in or sale, dealerships look at the vehicle’s age and mileage, its service history, and the general condition of the body, interior, and electronics.
Additionally, they take into account repair and maintenance records kept by the previous owner, as well as whether they were a smoker, according to used-car platform Motus Select.
“It is therefore worthwhile to look after your car, service and maintain it correctly, and fix any issues as they occur if you are looking to protect its value in the long run,” said the company.
Age and mileage
Age and mileage are unequivocally the two biggest factors in determining a pre-owned car’s value, as they lose their worth as they accumulate miles and years.
When trading in, your car will be benchmarked against the industry average for that particular model and the price offered will be decided accordingly.
“While cars are meant to be driven, those with less than 10,000km per year will be considered low mileage, while those with more than 20,000km per year will be considered high mileage,” said Motus.
Service history
A service history, preferably a complete one, is invaluable for protecting the value of your car. A full service history is also required to maintain its warranty.
“Vehicles that were not serviced in line with a manufacturer’s recommended guidelines were in all likelihood not looked after well in other areas, too,” according to Motus.
Condition
The general condition of a car could boost or reduce its value depending on whether it’s in a better or worse shape than what is expected for an example of that particular age and mileage.
“While there are no real guidelines regarding how vehicles are valuated according to condition, a buyer will most certainly use any faults or shortcomings to drive down the price,” said Motus.
Small stone chips can be expected on most vehicles and are acceptable, but more serious imperfections such as accident damage will drive down the price. It’s also a good idea to ensure the tyres and windscreen are in a roadworthy state or risk the price of these being deducted from what you’ll get for your car.
Furthermore, non-working features such as a faulty radio or dashboard warning lights will negatively affect a vehicle’s potential to sell, so getting these issues ironed out as and when they appear could go a long way in getting a satisfactory selling price.
Having the vehicle cleaned or detailed before an inspection will show its true condition to a potential buyer, and it could get you more money in the end than what the wash cost.
Owner records
Alongside a service history, keeping records of anything and everything you have done to, and spent on, your ride will assist in gauging how well it has been looked after.
“It is a good idea to keep a record of any additional expenses including maintenance items such as tyres, shocks, windscreens, and any repair work that was done,” said Motus.
“This will help prospective buyers or valuators determine future costs of ownership, which could influence the vehicle’s value.”
Smoking in your car
If you do indulge in the occasional cigarette, it is better to avoid smoking in your car.
“The smell of cigarette smoke can be almost impossible to get rid of or mask, and is sure to affect the overall value of a car,” according to the experts.
Keyword: How dealerships decide the value of your car