Choose your car wisely to protect future value
With ‘60’ registrations hitting the forecourts this week (1 September 2010), new research from BMW Financial Services has found that over a third of motorists (38%) would not research the vehicle’s future potential value before investing in a purchase, despite almost three quarters (74%) of drivers saying the future value would play an important factor in their choice of motor.
The research showed that over two-fifths (44%) of motorists would customise a brand new car to their own specification, with almost half (48%) of respondents revealing they would be prepared to pay for added extras if they thought would help to increase the car’s future value.
Joe Pattinson, General Manager, Marketing, BMW Financial Services, said: “As with certain improvements to a home, improvements to a vehicle can make a big difference when it comes to selling it on. And yet as our research findings have shown, there is a significant amount of misunderstanding about what may enhance a car’s future value, and what will not.”
“For example, many people thought a tracker system would most enhance a car’s future possible value. In reality, while the enhanced security offered by a tracker system may mean lower insurance premiums, a car fitted with a tracker will not attract a higher resale price than a car without. In contrast, many people felt an electric sunroof would least enhance a car’s resale value, whereas for many cars a panoramic glass roof will have a significant positive impact on its resale price. Motorists did however correctly identify that leather interiors are likely to add to a car’s future value.”
“We’re encouraging motorists to ensure they understand fully what will enhance a car’s resale value. If motorists are purchasing a car using a Personal Contract Purchase finance plan, the future minimum value is agreed at the time of making the purchase, so it’s important to choose a new car wisely.”
Used Car purchasing factors:
When asked on what would encourage them most to purchase a used car, almost a third (32%) of motorists said the brand/marque of the car would be the most important factor in their choice. While only 4% of respondents said they would be most influenced to choose a used car if it was a popular colour.
A third of motorists (31%) said a car that looked dirty and neglected was the single factor most likely to discourage them from making a purchase. While less than one in ten (9%) drivers would be put off if the car was an unusual colour.
“It’s important to choose a marque of car that is well known to keep its value, as some depreciate much more than others. Notably for motorists looking to sell a used car, the one thing most likely to put buyers off is something that is easily changed- its cleanliness and tidiness. This ranked ahead of extensive body work that didn’t fit the style of the car, engine modifications, or the car having several previous owners. All things that could have much more of an impact on its condition and resale value longer term.”