You don’t worry about a car’s resale value if you’re sure to use the car until it is sent for scrapping. But, if you’re a person who wishes to keep up with the trend and wants to change cars every 3-5 years, then resale value should be considered as important as any other factor before buying a car.
Before we look into the list of cars with high resale value, let us take a look at the factors that influence a car’s resale value:
- Brand Name: The brand label is one of the major factors that influences the resale price of a car. The popularity and trust achieved by the brand directly affects the price quoted. There is a difference in people’s preference for Malaysian brands and foreign brands. A good brand name retains 50%-75% of the car’s value even after 3 years.
- Make and Model: In addition to the manufacturer’s name, the year of manufacture and the model’s features are to be considered important. For example, Toyota alone offers a variety of models such as Ipsum, Vios, Nadia, Previa, Landcruiser, Rush, Caldina, Camry, Corolla, Estima, Avanza, and many more. Since there are numerous model names, each model would be packed with its own set of unique features and facilities. In addition, each of these models will have different price tags similar to how things work for the purchase of new cars. Year of manufacture also plays an important role. The younger the car is, the better the price.
- Age: The age of a car matters a lot when it comes to resale. The number of years the car is on road is a deciding factor to go forward with the proposal for potential buyers. The older a car is, the lower the chances of the car being bought. Classic cars are an exception to this rule. However, the older the car is, the more issues the buyer may face if he/she is going for a bank loan. The bank may reject the loan based on the age factor or reduce the margin which makes it troublesome for the buyer.
- Colour: Yes. The colour of your car influences the price when you look for resale. If your car is all bright and tangy in colour such as bright green, maroon and purple, it may affect the resale value of your car drastically unless you find a person with similar taste as yours. Generally, a metallic variant of colours like white, black, grey and silver are easier to sell. Your difficulty in finding the right customer may lead you to sell the car for a lower value.
- Accessories: You may be in an illusion that the accessories you have chosen for your car will return your investment for resale. That’s a rare case. Your choice and taste may not be the same as that of the new buyer. The buyer may not be interested to invest on these accessories. However, a decent choice of accessories that returns your investment is products like leather seat covers.
- Mileage: If you have travelled long distances in your car, you cannot expect a higher resale value. This is because the general rule says that the more miles travelled in your car, more are the damages and repairs you’ll deal with. In contrast, even if your car is slightly aged but has travelled less in terms of the number of miles, then your car attracts more buyers and can fetch you a higher resale value.
- Service Documentation: The new buyer will be curious to know if you have serviced your car at regular intervals. More importantly, where you’ve got your car serviced matter quite a lot. If you have taken your car for service at an authorised agent’s service station, it adds value to your car. Regular maintenance means your car is in good health.
- Accident Records: You have to keep in mind that any accidents that your car is involved in can impact its resale value. Whether the damage is visible or not, the effect on your car’s value is going to be negative.
- Interior Condition: Take care about how well you have maintained the interior of your car. If you haven’t paid attention to cleanliness of the car’s interior, the buyer may not be impressed and may decline your offer. If you are a dog/cat owner, a smoker or if you have a habit of drinking or eating inside the car, then it is better to get your car cleaned before you try to sell it.
- Modifications to the Car: While a few modifications add value to your car, most others may diminish the value. A few modifications that may add value can be tinting, leather seats and other security features since they take the driving experience to the next level. In contrast, the addition of massive rear wings, flamboyant body kits and neon lights are said to add a negative impression on the car, thereby reducing its value. Therefore, do not go with modifications that void the warranty or make it tough to handle the car.
Now, it’s time to take a look at a few cars with a high resale value:
- Toyota Vios: Toyota Vios was launched in Malaysia in the year 2007. The manufacturer provides a five-year unlimited warranty on mileage. The car includes safety features such as airbags, vehicle stability control and traction control. The car is available in manual and automatic variants. The original price of the car made in 2013 was RM70,800. If you are planning to buy the car now, you can pay a price of RM38,000-RM40,000. This value includes depreciation of 57%.
- Honda Civic: The car is available in three variants—1.8l, 1.5l Turbo and 1.5l Turbo Premium. As far as safety is concerned, the car brings in multi-angle rear-view camera, side mirrors with turning lights, hill start assists, vehicle stability assist, emergency stop signal, airbags, G-force control, walk away auto lock, auto-dim rear-view mirror, auto-brake hold and smart entry features. The engine has 4 cylinders and 16 valves. The original price of the vehicle as of 2013 was RM116,000. The resale value of the car as of now can range from RM62,000 to RM67,000. The prices are calculated based on a depreciation value of 44%.
- Toyota Innova: There has been a number of redesigns and facelifts to the car from the time it was introduced to the appearance the car carries now. You can add accessories such as rear seat entertainment system, reverse camera and more. The smart illumination system automatically lights up the headlamps when there is darkness. The car is available in 6 colours. The Optitron meter with a multi-information display is now illuminated with white and blue lights for better readability. In 2013, the original price of the car was RM94,000. After 5 years, the resale value of the car would be RM48,000-RM51,000 at a depreciation rate of 47%.
- Perodua Myvi: The car was launched in 2005. The features of the car include adjustable steering wheel, digital AC controller, multimedia system with Smart Link facility, advanced safety assist, vehicle stability control, traction control and many more. There are two variants when it comes to the engine – 1.3l Dual VVT-i and 1.5l Dual VVT-i. The price of the manual transmission variant of Myvi SXi Premium in 2013 was RM45,000. Now, the resale value of this car can be RM24,000-RM25,500 considering a depreciation rate of 45%.
- Mercedes Benz C-Class: Due to the popularity of the brand, reselling these cars is quite easy. Though the price is high, the car provides value for the money paid. The car offers features such as active blind spot assist, distance pilot DISTRONIC, active brake assist, active lane keeping assist, head-up display, seven-speed automatic transmission technology and more. The price of Mercedes-Benz C with an engine capacity of 2996cc in 2013 was RM397,000. The resale value of the car now would be RM146,600-RM157,000 considering a 62% depreciation rate.
Whether you’re buying a car with a high resale value or looking to sell one, it’s important that you know your way around cars to get the best price. Maintaining it in the best way possible only adds to its overall value.