There are many ways to protect and maintain the value of your bakkie so that you protect its resale value.
Common Terminology Used by the Motor Industry
Firstly, you need to understand some of the common terminology used by the motor industry.
Retail Price:
This is the recommended selling price, excluding any optional extras. Dealerships need to factor some sort of profit into the vehicle price, therefore retail value is normally on the higher end of the spectrum.
Trade or Market Price:
This price is usually lower than the retail value. This is the value that you need to consider when trading in or reselling your vehicle.
Depreciation:
This term refers to the reduction in the value of an asset over a period due to factors such as mileage and wear and tear.
Research
It is important to do some thorough homework before fully committing to purchasing a vehicle. Some points to consider include:
- The historic market demand for specific car makes and models
- Are 2-door or 4-door cars more popular?
- Do people prefer driving manual or automatic cars?
- Is the vehicle petrol or diesel?
Used car websites are a great place to do some research. You will gain information such as which vehicles are most popular right now, which vehicles sell the fastest, and which vehicles have held their resale value over time. The best time to trade your car in is when the trade value is roughly in line with the settlement amount owed to the bank.
Mileage and the general condition of a vehicle are important when looking at resale value. Keeping your car in the best possible will help maintain value over time. Vehicles with high mileage could prove to be costly down the line. A vehicle needing ongoing maintenance will also be worth less at the time of selling.
4 Tips on How to Maintain Your Vehicle Resale Value:
- Choose the vehicle make and model carefully
- Keep a detailed service record – This will benefit you when it comes to price negotiation
- Keep all your cars’ papers in order and ensure that there are no outstanding fines
- Deal with small issues, so that they do not become bigger and more expensive issues later
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