For some, a car is simply a mode of transport and is considered a replaceable item or a figure on an accountant’s ledger. Others may look to buy a vehicle with a commitment to hold onto it until they are lured into an upgrade.

When looking to buy a car, whether new or used, most motorists seek a vehicle that has a good resale value or has a reasonable trade-in value to assist in their next vehicle acquisition.

When buying a new car, the total cost of ownership needs to be considered and this means the resale value of a car should be looked after too. Always choose wisely...

Brand

Some brands maintain their value better than others. Consumers are drawn to reliable brands with proven track records, and will generally pay more knowing that they’re going to be in reliable hands. A prime example is the classic Toyota Corolla. Corollas are known as reliable, efficient vehicles and it continues to be one of New Zealand’s most popular selling vehicle for a reason.

Special deals, varying discounts, run-out and end of month sales all lower resale values and speed up depreciation. Motorists should also look for some form of price transparency from manufacturers, like the Honda price promise. Honda launched their price promise back in 2000, a promise to all new car buyers that they will get the same fair price on a new Honda, no matter who they are, where they live and what time of the month they buy.

On the other hand, cars with less than stellar reputations, or that have had rocky mechanical issues in the past, tend to have a much poorer resale value.

Colour

If you were buying a kitchen appliance, what colour would you choose: white, stainless steel? Unfortunately, we can’t all get behind the wheel of a ‘Back to the future’ DeLorean so choosing a neutral colour should be seen as somewhat important.

Sure, having a ‘Champion Yellow’ Suzuki Swift, a ‘Plasma Yellow Pearl’ Subaru XV or a ‘Sun Fusion’ Toyota CH-R might get you noticed on the street and give you some additional wow factor, but when it comes to resale your audience may be limited, but that limited market may also pay off, is it worth the risk? To be safe, stick to something neutral like white, silver or black.

Modifications

If you want to put a giant wing on the back of your car, lower your suspension or cover it in stickers, keep in mind that the less a car resembles the stock version from the factory, the lower your resale value could be. Not everyone has the same taste as you.

Five ways to maintain a vehicle’s value:

1. Treat your new car as though you borrowed it from your boss. If you have a spill, clean it up as soon as you can and try not to use your seats as a :dining room table. Cosmetic damage, interior stains and accelerated wear and tear will eat into your bottom line.
2. If your car has been victim to ‘touch’ parking using the bumpers, it could be beneficial to have the affected areas touched up before selling. Small cosmetic touches like this will enhance the appeal of your vehicle on the market.
3. Maintain your car’s service schedule and keep all necessary records to prove it. Doing this will undoubtedly improve the value of the car by helping to reduce any concerns or issues that a potential new owner or dealer may have with the vehicle and its history.  Things like cam belt replacements, transmission services, or sparkplug replacement history can be vital for buyers.
4. Maintenance is important. Cars that are running roughly or have smoke coming out of the exhaust will (unsurprisingly) have a lower resale value. Same goes for cars that have squeaky brakes or suspension, leaking oil or other obvious mechanical issues.
5. Mileage and age are equally important. If you come to sell a vehicle, ensure it still has a reasonable life left. You might have decided to wait three years down the track to sell it, but if the mileage is shooting up or you have a change of circumstances, you might need to sell it and upgrade sooner than you planned.

It is also important that when it does come to the time to sell your vehicle, it always pays to ensure you have an up to date Warrant of Fitness (WoF). The WoF has to be no more than 28 days old, unless both you and the buyer agree and contract out of this requirement. But it is safe to say that a car with a new WoF and registration left on it will always gain a higher price with one with one, or both, of these expired.