Factors That Impact a Car's Residual Value

While this may not seem like a major factor, the colour of a car does determine its resale value. Cars with more neutral colours such as black, white, or silver tend to have a higher resale value than cars in more unusual or bright colours. This is due to the fact that neutral colours never become unpopular with the passage of time.

Condition of the car

A car in good condition tends to have a higher residual value than a car that is not. This includes not only the condition of parts under the hood but also includes the body of the car and the maintenance of the car's interiors.

Brand

The reputation of the car brand is another determining factor with regard to residual value. A car that is manufactured by car makers that are well-known and highly reputed have higher residual value. In several instances, individuals looking to purchase used cars tend to look specifically for a particular brand of cars due to the fact that they require fewer repairs than other car brands.

Maintenance

Cars that have been sent in for regular servicing generally have fewer issues. This, in turn, determines the value of the car. Cars that have not been serviced regularly have a host of other problems apart from the mechanical issues. Cars that are properly maintained and have proof of the servicing history of its condition have higher residual value.

Mileage

The number of kilometres travelled is a huge determinant for a car's residual value. The larger the distance that a car has covered, the lower the residual price. This is because the number of kilometres already covered indirectly indicates the wear and tear of the car itself. Even if a car has an older manufacture year, if the number of kilometres covered is comparatively low, it could have a higher resale value than a car that is newer with higher mileage on it.

Other factors that go into determining the residual value of the car include the safety features such as airbags, anti-lock brakes, and power doors and locks. Features such as infotainment systems, parking sensors, and alloy wheels are other aspects that are factored in when determining a car's residual value.