Protecting Your Vehicle's Resale Value
Protecting the of your vehicle is not only prudent but necessary in attaining the right lease package for you. One of the major costs in owning a motor vehicle is depreciation. A car is a depreciating asset. It seems like an oxymoron ‘depreciating’ – ‘asset’. In fact it is quite straight forward. The car is the ‘asset’ and the aging process is ‘depreciating’ its value to the next buyer.
By simply thinking ahead and planning your purchase and taking a modicum of care in its condition you can save yourself hundreds or even thousands of dollars.
By projecting the resale value you can also determine an appropriate ‘residual payment’ or balloon payment for your car finance. This will set your monthly payments and allow you to avoid any unexpected surprises when it comes time to sell and/or refinance your vehicle.
You should also take the vehicle itself into account. Do your homework on the make and model you want. Also include such factors as reliability and practicality into account. A family of 5 does not fit into a cabriolet – It may look good in the office car park, but your own bed at night is always warmer!!
Other important qualities in retaining resale are to look for a slightly used, demonstrators or end of model/year run-outs. They can save you thousands with only minor kilometres that can still be fully leased.
If you are time poor, weary of the ‘car salesman’ or simply a novice; seek professional help in obtaining the vehicle you have chosen.
Another trap many people fall into is the monumental catastrophe of colour choice. Bright yellow belongs on Ferrari’s and Fiat 500’s not a family CX-9.
Watching the current market leading trends is also important, such as the decline in purchases of large vehicles and the increasing popularity of diesel and LPG driven family sedans.
And finally before you do trade-in your current car assess any minor damage as a cost to your sale price. Sometimes a minor scratch will be over looked but smelly internals and/or stained seats may need a steam clean to increase the appeal to a future buyer. You will also have to weigh up the time involved in a private sale verses a trade-in price. Generally you will get a little more in a private sale, but this may take up time you do not have. Do what is best for your situation.
Thinking ahead with a clear head is the best way to increase your re-sale value of your car. Likewise selecting an appropriate residual value will protect you from having a shortfall payment at the end of your lease. Private Fleet consultants can create a tailored finance package which takes all these aspects into account for you including an appropriate lease term, residual payment and cost of ownership packages.
For an explanation of how it works watch the video.
Level 2, 9 Help Street