While you might have splurged on your favorite brand when you bought your car, years later you are left wondering if that will translate into resale value. Despite maintaining your car in a pristine condition, certain makes and models do not deliver on price. Several factors play into how a certain brand is perceived in the used car market. If you are wondering how your car will fare in the used car market, this guide will be useful for you.
Let’s face it, some cars floor us on the exquisiteness of their craftsmanship alone. In the case of luxury names like Porsche, it is safe to assume that a large section of the population feels the same way. The prestige badge is however a tricky one to navigate. We all know that we have to shell out the big bucks when buying a luxury car. This is however unfortunately not always true in the used car market.
Most luxury cars lose their value once on the road, much like any other car. However, in this case, the depreciation could be higher simply because of the price tag it came with. Add to that the service costs accrued and you’re looking at a pretty heavy bill. Some brands are thankfully always in demand like Land Rover for its distinct image, and Mercedes Benz for its workmanship. Due to current supply chain issues, luxury cars are not depreciating as rapidly in the current market.
Reputation is perhaps the biggest factor that most used car buyers consider. Understandably so, this is vital before making a big investment. When you buy a car you want to be sure of its reliability on the road. Constant safety-related recalls raise a red flag in this regard and if you as the seller haven’t paid attention it will be alarming. This is because as used car buyers, the onus is on them to find and protect themselves. They have to ensure they are not driving a defective or unsafe car.
For practical car buyers, reliability is big and Japanese brands fare better in this regard. Names like Mazda consistently score higher in reliability surveys making it a hot favorite in the used car market. Others like Toyota and Honda are also not far behind and are beloved not just in Australia but across the world for their dependability and functionality.
When it comes to the largest customer segment there is – families, luxury cars don’t do too well. This boils down to the poor fuel economy and expensive maintenance costs of these cars. What ultimately matters for this bracket is the kind of dent it will leave in the budget. So a gas guzzler in the face of rising fuel costs or one that invites expensive repairs for a simple scratch is not what they are looking for.
What this section is primarily looking for is a durable yet practical option. Brands like Kia, Skoda, Toyota, Ford, and GMC consecutively score high in this segment due to their robustness. The durability and performance of brands that are on the higher end of the price scale like Mercedes Benz and Audi also continue to make them a favorable option.
Brands and cars often present a paradox, common sense would dictate that as the age appreciates the price will depreciate. In the case of some beloved brands and some models, this is however false. Certain models like the Jaguar E-type and the Ford Mustang have ardent fans who are willing to pay an excellent price for a vintage vehicle.
Certain models that were beloved but have stopped production might also be loved the same way. However, if a new model is coming out soon it is very unlikely that the brand value will stay intact, this is especially true for practical cars that usually come with safety improvements. Similarly, certain models of even reputed brands have garnered a bad rep over the years and will not perform well in the used car market.
Now in case, the car has been in some kind of accident or flood damaged, brand value will have a different role to play. If the damage is pretty severe, unfortunately, it is very unlikely that you will find any second-hand buyers for your car. Additionally, not divulging information about the damages the car has suffered will likely invite legal trouble.
Approaching a brand dealership will very likely produce the same results with a very low price offered for your troubles. The best option in this scenario is to connect with trusted local cash for car services like Cash For Car Buyer. They often offer a fair deal on most cars and unlike the other two options, their criteria for calculating the estimation is a little different.
Heavier cars are simply worth more because of the amount of scrap metal they offer. Certain brands like Land Rover and Ford are heavier as opposed to sleeker sedans and hence command a higher price when it comes to scrapping.
This is perhaps where the luxury factor plays in. If your car sports a luxury brand tag like Audi, BMW, Porsche, etc, their OE parts are in high demand. In this case, the parts the service can salvage will be of more value compared to family brands.
If there are very few salvageable parts to start with, then it all comes down to the body frame of the car. In this scenario, the brand in question will have a very small role to play because the price is simply dependent on the metal it can offer.
This guide is an attempt to match you to your brand according to your requirements. Resale value is an important aspect of a car buying decision and it must be considered with utmost care. Our comprehensive list of determining factors will guide you the right way.
