The chances are incredibly slim that you will own only one car your entire life. Someday you will want to sell or trade-in your current vehicle, and when you do, you want the highest return possible for parting ways with it. The resale value of cars varies a lot depending on many factors, and you’ll want to know what those factors are before that time to sell arrives.
For a deeper dive into what determines the average resale value of cars, keep on reading and we will give you the scoop!
Depreciation
Not that long ago, before the pandemic, it was estimated that a car’s value would lower by about 20% to 30% one year after you bought it. After that, cars would depreciate around 15% to 18% each year from two to six years after purchase. After five years, a car’s value will lower by 60% from the price you pay.
Current Market
Since COVID-19 began, however, the average resale value of cars is jumping by, at the very least, 50%. For that reason, many people want to see what the value of their car is currently.
You may also find yourself asking, “How can I increase the resale value of my car?” The condition that cars are kept in can determine the future resale value of cars.
Condition
Kelley Blue Book has four conditions in their calculator, which include:
- Excellent
- Very Good
- Good
- Fair
Dealers will assign labels like:
- Rough trade-in
- Average trade-in
- Clean trade-in
- Clean retail
If you want to give the condition of your car a boost without spending thousands of dollars, car interior detailing and a clean look can help.
Popularity
Are many people interested in your car’s make and model, or just a few? If you have a car that is highly desired but only a few of those vehicles are on the market for sale, you can ask for more money. If there isn’t a lot of interest in what you own, you may have to sell it for less of the price than you were hoping for.
Color
Especially with used cars, buyers must purchase a color that is in stock, whereas in new cars you can get options. Some colors are more popular than others. The more unusual the color is, versus a common black, white, or silver, it may be harder to find a buyer and again, you may have to price it less than you want to.
Brand Name
The make of the car or brand name is important to car buyers. People will offer more for a car brand they feel is prestigious in their name than one that is not.
Mileage
The mileage of a car usually coincides with the age of the vehicle. Regardless of age, the fewer miles the car has, the better the value. In fact, when you calculate the resale value of cars, the number of miles is a data field you must input to get your estimated price.
Resale Value of Electric Cars
Recent studies have determined that electric cars depreciate quicker than traditional ones. In fact, there is a report they lost over $5,700 from their original sticker prices, which amounts to a whopping $28,500 after five years of ownership.
The Resale Value of Cars
Now that you know more about the resale value of cars, if you are looking to sell yours, you know what to consider when putting on a price tag. Visit our site again soon for more valuable advice and fantastic tips like these!
