What Kills the Resale Value of a Used Car?

Not all used cars fetch the same kind of resale value. There are some used Renault Duster in Bangalore which fetch better price than the other brands. We do know that the age of the car and the condition determines the resale value. However, there are some silent killers that completely destroy the resale value of used car of a particular brand.

Reputation of the Brand

There are certain car brands that have earned a bad name for themselves in the market because of their manufacturing policies, servicing problems, and even employee unrest. All this affect the value of the product that is out in the market. People tend to remember the bad reputation and prefer to stay away from such brands.

Discounts Offered by the Brand

There have been a lot of cases where the resale value is killed by the brand itself. They initially launch a particular model at a specific price. After 6 months they start offering discounts and special festival prices to the customers. This ultimately reduces the price of the new car which in turn kills the resale value of the model.

High Maintenance Costs

While people pay the car acquisition cost only once, they have to pay maintenance cost quite frequently. If a particular model consumes more fuel and needs frequent maintenance then the running cost of the car for the owner tends to be high. In such cases people prefer not to purchase such cars.

High Cost of Parts

There are a lot of brands who sell parts at a very high cost. When a person is evaluating a used car for that brand, he is naturally going to look at the cost of parts replacement as well. A high figure here kills the resale value of that model.