Resale value is extremely important to those of us who like to buy a new vehicle every few years or at least as often as our current car loan runs out. While loan terms are getting longer with some extending to as many as 84 months, when the resale value of a vehicle has been protected throughout the ownership of the vehicle it’s much easier to use the vehicle for a trade in and get the most value out of it. Whether you choose to drive your vehicle until the loan runs out or wants to use it to pay off your loan when purchasing a new vehicle you need to know what will affect the resale value.

Mileage – This is one of the greatest determinants of whether or not a vehicle will have a good resale value. The lower the miles are the higher the value is going to be. Those customers who look to purchase a used vehicle will typically start with the mileage before they consider any other factors its important you keep your mileage as low as possible, which can be extremely difficult when your car is the one you use for daily driving, especially if you have a longer commute than most.

Superficial Condition – This is the look of the vehicle inside and out. It doesn’t have anything at all to do with how the vehicle operates, but how it looks. Before you take your car to the dealer for a trade in or try and sell it yourself, make sure all the scuffs and scratches are taken care of and the interior looks perfect. It’s worth it to pay a professional to detail the vehicle just to have a higher resale value when it’s time to have your vehicle listed for sale or trade it in.

Mechanical Condition – This is one of the most important parts of the vehicle. Anyone who will look to purchase your vehicle will want to take it for a test drive and will need to feel confident and comfortable with the vehicle as they drive. If you keep up with the scheduled maintenance of the vehicle during your time of ownership and keep a log of that maintenance you will enjoy a much higher resale value than if you allow the maintenance to lag over time and mileage to have long periods in between.

Rust – Rust is something you should take care of before you ever consider trading in or selling your vehicle. Rust is one of the ugliest things that can happen to your vehicle. You can prevent rust by keeping your car clean during the winter, especially in areas where the winter weather includes salting of the roads. Even though it seems as if the car is going to pick up salt quickly again, keeping a build up from happening and cleaning it regularly will help prevent your car from rusting, which is one of the best ways to protect the resale value of your vehicle investment.

Collisions/Repairs – If you have been in a collision with your vehicle it’s important to make sure the repairs are done correctly and to the standards of the original manufacturer. There are some dealers that won’t touch a vehicle that has been in a collision and you certainly won’t receive as high a resale value for your vehicle as you would if it wasn’t in a collision at all, but you can still receive a reasonable price for your vehicle if you report everything that has happened while you have owned the vehicle and have a complete report of the repairs that were completed.

Color and Customizations – While you own the car you should enjoy it and have the color you want, but if you know you will be selling it in five years or less you might want to consider the resale value before you choose a color that isn’t extremely popular. Typically white, silver and black are safe colors, but if you want a yellow or green car you will have a harder time getting the price you want. The same goes for customizations which can make the car look the way you want, but could make it less attractive to you.

Geography – The resale value of your vehicle does depend upon the demand of the area. A convertible in the northern part of the country won’t keep resale value as well as an SUV or pickup truck, but will do better in Miami or Los Angeles. The demand of the area helps to determine the resale price you will get for your vehicle. Of course if you do have a car that only drive in the warmer months, this needs to be noted by the dealer when you trade it in since you will know the car did not experience any of the winter road hazards that can be detrimental to the vehicle.

Supply and Demand – Some cars are made in only limited numbers or are special editions and if you keep your car in pristine condition it will have a much higher resale value. In some cases the car may even go up in price regardless of the number of miles driven just because it’s a rare vehicle to own. This applies to some of the options of your vehicle that makes it more attractive to a crowd that will pay much more for the vehicle than you might have when you originally bought it.

Brand Image – This is an important factor when you choose to buy a vehicle. If you are choosing between three vehicles that are basically similar in nature, the one that has the reputation for reliability and resale value is the choice you should make. Toyota is a great example of this as they have been on the higher end of the resale spectrum for many years. On the other hand Kia and Hyundai haven’t gained the same clout yet, but seem to be on the rise, but if you choose between these three names you should choose Toyota when you know you will be selling the vehicle in a few years.

Incentives – Receiving incentives to buy a vehicle because it was at the end of the run for the previous year or wasn’t the most popular trim of that model will carry over into the resale value. It’s great to get a good price up front and enjoy some incentives to buy the vehicle, but these will eventually lead to a much lower resale value when it’s time to trade in the vehicle for a new model.