What are the factors that harm the resale value of your car?

As Malaysians, we like to squeeze as much money out of everything we own as possible. Cars generally depreciate 20 percent of its value in the first year of ownership. After that, the value of the car would drop 15 percent every subsequent year until the 10th year.

By the 10th year, the car would be worth 10 percent of what it originally cost when you bought it.

But depreciation value also varies according to car brands and models, as well as the geographical location, i.e, if you’re living in Sabah or Sarawak, your sedan would not be worth as much as a sedan in the city.

Car make and model

So, what makes a Honda or a Toyota retain its resale value better than others? The biggest factor is the reputation of reliability and fuel efficiency of their models. Doesn't matter if it's true or not. It's all about perception.

This is why Japanese makes generally depreciate slower than European and Korean cars. It doesn’t help that spare parts for some brands are harder to come and pricier than other more popular Japanese or local brands.

Again, it's all about perception. 

Car colour scheme

Malaysians are known to be more practical (read: conservative) when it comes to the colour of their cars. 9 out of 10 Malaysians would pick a colour that is easy to maintain and are not too flashy, generally this means white, silver, black, or grey.

So, if your car is a bright yellow, the resale value would not be as high as one painted in white as the car's appeal would be narrower.

Car condition

We’ve all seen the ad listings describing the car as ‘accident-free and one female owner or one octogenarian owner’ (even better if both). These listings have become a running joke in the car community but there’s a reason why the trend started in the first place.

It’s a no-brainer that the better the condition of a car, both inside and out, the higher the value it can fetch.

After-sale service records

Again, this is related to the condition of the car. The lack of a complete service record of a car raises questions about the authenticity of its mileage, as well as its mechanical health. Prospective buyers will want to know if a car has been well taken care of.

Modifications on the car or aftermarket accessories

While modifications would make your car more appealing to you (keyword 'you'), other buyers may not share your taste in customization.

Other than the few points mentioned, there are also others factors like the current economic outlook and market conditions.

For example, if you sell your car during a recession, you might not be able to get the best value as many buyers would want to spend as little as possible.

This post is made in partnership with Carsome.my.

If you are selling your car, Carsome promises up to 20 percent higher trade-in price, fast and speedy transaction (payment within 1 hour). If you are buying a car, Carsome promises zero hidden charges (list price on many used car classifieds are not actual the selling price), 1-year warranty, and 5-day money back guarantee. You can also browse their cars via a 360-degree VR view.