How to maximise your car's resale value, year after year

Buying and running a new car opens the door to many ongoing costs but potentially the biggest hit to your bottom line is depreciation. New cars typically lose value the minute they drive off the lot, then continue to drop in value as the years and kilometres go by. After a few years, your car can be worth a lot less than what you paid for it. While there are exceptions – classic cars that balloon in value, the robust prices that came from the supply shortages of the COVID era – depreciation is an unavoidable part of new-car ownership. It is, however, possible to minimise the loss. Here's how to do it.

Buy the right car

Some brands have stronger resale than others and two cars that cost the same new can have vastly different values a few years down the track. Minimising depreciation, then, really starts with buying a car that holds onto its value better than others.

Vehicle-data organisation such as Redbook or Glass's Guide have projected resale values and other information available on their websites that can help you make an informed decision.

Keep it looking good

People buy with their eyes. And even before they see a car in person, today's online buying portals allow them to make a good assessment of the condition. If your car looks scrappy, they're going to scroll past or demand a discount. If it looks tidy or – even better – still like new, they might add it to their shortlist and – if the deal progresses – pay top dollar.

How to keep a car looking like new? When it gets damaged, fix it. When it gets dirty, clean it because environmental contaminants make your paint, exterior trim and cabin age faster. If you can keep it out of the sun and weather and invest in some protective measures – think car polishes, tyre/trim protectants and ceramic coatings – even better.

Keep the kilometres down

Cars are better built than ever, with many capable of still giving dependable service with 200,000km-plus on the clock, but for most buyers, a car with a low odometer reading is more appealing than one with a higher number. Selling your car before it hits, say, 100,000km or 150,000km – a time when many cars falls off a depreciation 'cliff' – is one way to minimise resale losses.

Or you can just keep your car's kilometres lower than the average. You don't have to be silly about it but walking, riding a bike, using public transport or – for that yearly interstate slog – hiring a car could potentially save you a bundle down the track.

Service by the book

A big fear for any used-car buyer is getting stuck with a “lemon” that keeps breaking down and costing them money. If your car has a patchy service record, you're telling buyers it hasn't really been cared for properly and they will expect a discount – if they choose to gamble on it. A car with all of the right stamps, contrastingly, shows you've been serious about keeping it tip-top and will allow you to ask top dollar.

Don't modify it… unless it's the right modification

If you have a ute, 4WD or some other niche vehicle, a quality gross vehicle mass (GVM) upgrade, bullbar or other useful mod might make your car more desirable to buyers. Modifying your car for speed or individuality, however, rarely brings a positive resale outcome. Indeed, it can make your car worth less because it can suggest your car has led a hard life or simply make it less appealing to the mainstream buyer.

^Disclaimer

^{Viva Energy Australia Pty Ltd (“Viva Energy”) has compiled the above article for your general information and to use as a general reference. Whilst all reasonable care has been taken by Viva Energy in compiling this article, Viva Energy does not warrant or represent that the information in the article is free from errors or omissions or is suitable for your intended use.}