The resale value of a car is a projection of its market value. Model type, age, and condition are primary factors determining market value, with mileage, rarity, and equipment levels also contributing.
Age is the variable that most impacts the resale value of an automobile outside of the model type. Regardless of the level of upkeep applied to a vehicle, normal wear and tear will affect the car’s overall condition. Determining just how much the use of the vehicle has worn down each auto part would be an intensive process, so a generic deduction is made each year from the value to account for the aging process. This deduction is known as depreciation and begins when the automobile rolls off the new-car lot. Every year, more depreciation is applied, lowering the vehicle’s value to cover the effects of regular use.
The overall condition beyond normal wear and tear affects a vehicle’s resale value. Proper maintenance and careful use tend to keep a car in the best condition possible, holding the value high. A lack of maintenance can cause increasing amounts of damage to the automobile, lowering its value. Regardless of the success of repairs, collisions can also decrease the value, and so can any naturally occurring damage such as floods.
Sometimes, installing aftermarket car parts can help raise the car’s value. Aftermarket car parts are those manufactured by a third party. These parts can replace existing auto parts, from wheels to precision engine parts, or they can be add-ons, such as audio components. The parts’ quality and the installation’s appropriateness also affect value.
The ultimate determinant of a vehicle’s resale value is the contract between seller and buyer.
