Like for any other machine, the performance and look of a car degrade with time – and with that, its value. However, there are a lot of other factors that determine how much value a car loses over time. A lot of these factors are actually in your control. While depreciation is inevitable, you can slow down the process to make sure you get a good amount for your car.
In this guide, we will highlight some of the common mistakes that you can avoid to get a reasonable price for your car.
Factors Affecting Car Resale Value in the UAE
If you have plans to resale the car, consider the following factors that can impact its price range.
Car History
Car history is the first thing people will go after for any car listed for resale. People can check their car’s chassis number in the UAE via visa official online portals of authorities. This chassis number, also known as Vehicle Identification Number (VIN), gives them a brief idea of accident records or whether the car went under major repairs.
Major accidents and flood damaged cars are often red flags as it means various parts of the car went under replacement. If the work is done through a local workshop, there is not much evidence for the usage of genuine parts. Hence, with shady car history, you can expect some lowball offers.
Mileage
Mileage of cars is a no-brainer when it comes to your resale value. In fact, showrooms often advertise used cars through their mileage. When you purchase a car, the warranty is usually valid to a certain amount of kilometres depending on the brand. Warranty on used cars after it has surpassed its recommended mileage can become expensive and will of course lower the car’s resale value.
Age of Car
The age of the car is kind of a grey area as even a 10-year-old car in good condition can fetch a good price as compared to some new models. However, even if you have less mileage on the car, you will run out of warranty in 3 to 5 years. From the buyer’s perspective, the older the car gets, the higher is the maintenance cost.
Engine Condition
If you have regularly maintained your car there shouldn’t be much of an issue with the engine. There are various factors that can impact a car’s engine. For instance, delayed engine oil change, valves and pistons leading to engine seizure, a damaged timing belt can cause catastrophic damage if it’s broken while driving and most common of all, overheating of the engine can cause a cracked gasket or engine block.
Corroded Body
The car body is usually built with a combination of lightweight metals including steel. Hence, the body is vulnerable to rust and corrosion if proper care is not taken. Your car resale value would plunge if rust took hold under worn-off paint and damage your car paint.
You can expect unwashed cars to be affected by corrosion faster in the extreme environment of the UAE due to dust and moisture.
Brand Reputation
The brand reputation varies from country to country. Even the model’s reputation varies depending on consumer reviews. There are brands that are more reliable with access to steady and cheap local parts. In short, you can expect to fetch better deals for renowned brands than a rare ones.
Fuel Economy
Keeping the taste of luxury vehicles out of sight, most car market campaigns are driven toward fuel economy. This helps manufacturers sell more cars as people prefer one with low consumption. The same criteria will affect the resale value of your car as well.
An expensive car with the fuel consumption of a running train will attract fewer admirers than one with reasonable fuel economy.
Colour
Based on market perception, sober colours like black, grey, white and silver, tend to get better resale value. You can test the theory based on your daily road drive. The question is how often do you see a car coloured orange or pink? Though there are options to change car colour in the UAE it will be an expensive option.
Modifications
Personalised or modified cars are not a cup of tea for everyone. Bumper stickers, sunroof addition rear spoilers and oversized tires can depreciate car value in the UAE or any part of the world. Some modifications like wheel rims may be acceptable, but it’s best to leave the car in its original shape.
Original Owner
The ownership history of a car is a debatable area as it depends on the purchaser’s convenience. A single-owner used car means the car history will be straight forward whereas a car that has changed hands multiple times, might indicate an underlying problem. If you are an original owner, you can follow tips to preserve car value for selling it later.
Explore listings of used cars for sale in the UAE to get an idea of your own vehicle’s resale value. Take advantage of dubizzle Cars SellerAssist to raise a team of professionals to market and get better sales leads for your car.
Stay tuned to the UAE’s leading auto blogs for more information on car parts, market trends and automotive technology.
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