How to cash in on your cars resale value

Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
Our authors
, updated on November 25th, 2021       

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.

When your wheels have run its course and you are looking to sell it on the used market the last thing you want to do is sell it for half of what it is worth. There are ways you can get your cash back when it comes to your cars resale value, but it does come in handy to know what to look for when it comes to this.

Taking care of your vehicle has its rewards

You might lose as much as 20-25% after a year of your car’s value, but you could lose more by the way you handle your car. Sticking to your cars maintenance schedule can have its rewards and it also wards off depreciation. This is likely to increase the resale value on your vehicle in the used market

Buyers who are looking for a used car care about how a car looks and would prefer to buy a vehicle that looks fairly new instead of something that looks like it might fall apart or cause issues. Cleaning and making minor repairs to your car can help you negotiate an extra $300 or $2,000 for your vehicle if you sell it privately.

Know when to sell

To make the most of your car resale value it helps to know when to put your car on the used market. The market condition in which you choose to sell your car can either make or break how much you make back on your cars resale value. A market where there are a high supply and demand can work in your favour in terms of the resale price.

If people are looking for vehicles that are more fuel efficient and your car fits the bill, the price of your car could be increased. The same goes for your cars colour. Knowing which colour cars are most popular in which market will help you see if your car will have a higher resale value. Colours like white, silver, black, red and gold are your classic colours that can speed up the process of selling your vehicle.

It’s all in the brand

Car brands play a vital part on how Australians purchase vehicles. Having a car brand that is desirable and has a good track record will see your cars resale value being retained by almost 46-6-% of its value in the first three years of ownership depending on which brand it is.

Consumers in the used market are just as picky about used cars. You might experience some darker days on the used market if the brand of your car is known for depreciating quickly or is known to have mechanical and maintenance issues.

Knowing which cars retain a high resale value next time you purchase a car can save you a lot of trouble when it comes to reselling your car, especially if you have a car loan attached to it.

Don’t drive down its value

Driving your car everywhere can be convenient, but it can also drive down its resale value. The more numbers your odometer has the lower the resale value. If a car has more than 100,000 km on its dial it will deter buyers from purchasing it. Keep in mind that the higher the mileage your car has the more servicing it will require which means more expenses for the potential buyer.

Other factors that you can keep in mind is to be careful about adding extra’s or modifications that will not get you any return when it comes to selling. Just because you spent extra on your sunroof doesn’t mean that the next buyer will want to fork out extra for it.

Easily compare car loan quotes today

Our car loans take your money further. See how you can compare and save with us.