Retaining the value of your vehicle and obtaining the maximum resale price are critical factors for many Americans who are living paycheck to paycheck. A vehicle is a big investment for
working class individuals, especially blue-collar workers. Let's consider 6 key factors that impact the value of your vehicle below:
#1: Mileage
Mileage is a critical factor because it generally quantifies how much wear and tear your vehicle has experienced. Friction and heat are the most significant factors that deteriorate the longevity
of an automobile. This friction is most likely to occur under longer durations and can be gauged with mileage.
However, mileage is becoming less and less important because full synthetic lubricants are reducing long-term wear to create negligible differences between new and heavily used drive trains. Since Mobil 1 proved that it could run a BMW for one million miles on its full synthetic oil with very little wear, the significance of mileage has diminished. See https://www.theguardian.com/technology/2009/oct/25/bmw-325-million-mile-motor
#2: Maintenance
Maintenance is probably the most important factor. Proving that your vehicle has been kept up with regular oil changes at the dealership pursuant to factor specifications can eliminate a lot of worries. Maintenance is also important because drivers who fail to nip issues in the bud typically experience extensive damage to the vehicle.
For example, if a driver fails to promptly fix a leaky transmission fluid pan, the entire transmission can malfunction and fail after just a few minutes. Many maintenance problems are not instantly noticeable but start to degrade the performance and integrity of the vehicle insidiously.
Having your vehicle inspected annually to ensure that all the suspension and steering parts are in good condition can vastly improve the value. A lot of the rubber parts start to degrade after five years and can impact the comfort and handling of the ride.
#3: Accident History
Accidents can greatly depreciate the value of any vehicle. This is because even minor fender- bender accidents can cost more to repair than the vehicle is worth. The reason is that newer vehicles are designed to deform on impact, and getting all the parts laser aligned and welded back into place is an art form.
If the drive train is not square, for example, it will perpetually wear down the axles and cost more than the vehicle is worth to continue driving it.
Paint and dent repair is also very expensive because a lot of prep work and color matching is required to fix body damage. And car buyers typically demonize body damage as a sign that the vehicle was neglected and may be afraid of hidden damage.
#4: Market Conditions and Fuel Economy
Some vehicles are just in demand at a given time. If gas is selling at $5 a gallon, you are not likely to get top dollar for a Hummer that guzzles gas. And if it is winter time, you are not going to get as much for a convertible, since the new owner won't be able to enjoy it any time soon.
Furthermore, if brand-new cars are difficult to afford because of high interest rates and supply chain issues limiting availability, used cars may suddenly jump up in price.
#5: Features
If your vehicle has features that are in demand, such as the latest infotainment or automated driving, you can expect a higher premium. The value of features may also be particular to the
region. Subaru's, for example, are often popular in states that get a lot of snow because they handle well and typically come with all-wheel drive. It is also valuable to have a rare model, a limited edition of a vehicle. Even if your car isn't a Ferrari, a particular trim package or sports upgrade that is rare can add a lot to the appeal. In many cases, sourcing out a used vehicle with special features is a difficult task.
#6: Rust
Rust is a real problem for car buyers because many inspection stations give them a hard time if there is any rust on the vehicle. It is not unheard of for an inspection station in some states to fail an inspection, even on a brand-new vehicle, if it has a small rust hole in the body. Cancerous rust is difficult to get rid of and is like a ticking time bomb that can rear its ugly head again at any time even if it seems to be gone. In fact, auto body repair shops will never provide a warranty on a rust repair.
Rust can regrow from microscopic seeds of oxidation under the paint. It is difficult to stop and can eat away at the longevity and collectability of any vehicle. And as the vehicle ages, it may be difficult to find car repair shops who will even work on it. This is because they are afraid of opening up a can of worms and damaging a vehicle during a repair.
Written by Taylor McKnight, Author for Best Oil Company LLC
