Across the globe, Second Hand Luxury Cars Under 20 lakhs are mostly considered bad investments because of depreciation that leads to loss of value. You may feel it doesn't apply to your car. According to ezAuto, car depreciation is more than 20% in the first year. For example, Mercedes-Benz GLE500 depreciation value fell by 65%, and BMW 750i xDrive by 61%. This shows even if a luxury car is purchased depreciation happens and value drops as more years are run.
But no worries, that even though car value is depreciated but with proper care and maintenance most of the value can be retained
What are the factors to be considered to maintain the Second Hand Luxury Cars Under 20 lakh?
It is only putting cars on resale when people realize the depreciating value of the car. This can be changed beforehand if the car is maintained properly. Some of the factors are:
Car make and model:
The resale value of a car varies depending on people and geographical location. In some regions, brand value is more focused due to presence that makes perception for users. The adulated crowd is interested in particular brands and thus are ready to buy at any cost.This doesn't apply to most crowds as some people are more inclined to technical aspects.
Some people are interested mostly in technical aspects such as performance, interiors, and specificity. These are the people who are most interested in the value a car provides to them. Most prestigious luxury brands such as Mercedes-Benz, Audi, BMW, and Skoda have quality and reliability that can be used for day to day purposes.
Colors are an important factor in selecting a car. Most people have a personal color preference while selecting a car..Flashy or bright colors are not used by most Indians and if the company discontinues this particular color then maintenance becomes a concern. Most people use variations in white, black, silver and blue, and prefer to pay more for those colors.
Color in cars also becomes a medium through which their adulation and power are shown. Some people use white color as it doesn’t show scratches, dents, or even scrapes contrary to other cars like black or any other colors where scratches are shown prominently. Likewise, dust settlements are less seen but prominently seen in other colors.
Let's check some facts:
According to a survey in India, 4 out of 10 cars produced, and 8 out of 10 globally produced vehicles are white. A total of about 15 percent of all cars produced in the country were painted silver and grey individually.
According to BASF color report 2021 for the Automobile industry in India,
|White 37%||Blue 9%||Beige 1%|
|Black 17%||Red 6%||Gold 1%|
|Gray 15%||Brown 2%||Orange 1%|
|Silver 8%||Green 2%||Yellow 1%|
Number of Owners
Most people prefer to buy brand new things rather than second hand. For eg. Most purchase mobile first hand rather than second hand even if it is expensive. This is ingrained in human psychology to purchase brand new things, so buying a second hand is always in the lower spectrum of sales. Similarly, the resale value of a car is lower compared to brand new ones. So don't expect a good resale value in second hand cars. The resale value of a car becomes less if it has more owners. As each person has their unique style of driving which can lead to more wear and tear thus decreasing the performance of the car.
Interior and Exterior
Most people want a good looking, well maintained, and well kept car. If there are scratches or dents in the car it's better to do car maintenance before putting it into resale. Similarly, no one wants a car that has stains on seats, bad odor, faulty ac, unhinged doors, broken glass etc. It's better to enhance your interior and redo the painting to increase the value of resale.
Most cars with lower mileage consist of higher resale value. Conversely, a car with higher mileage means more wear and tear which leads to lower resale value.
Car models apart from the vintage have more resale value. Unfortunately, the resale value of a car is lower than the brand new cost. If it is 9 to 12 years old then it will become difficult to get a good resale value of a car.
If the above factors are considered then deal closing will be easy with decent resale value of a car. Auto Hangar Advantage is one of the largest Mercedes-Benz dealerships, providing a world-class buying experience for more than two decades. For more information, you can find it on our website or call us for assistance.
Also Read: Why Purchasing a Used Luxury Car is a Good Investment
Also Read: What should I look for when buying a used Mercedes Benz?
Also Read: The Many Benefits of Buying A Used Luxury Car At Auto Hangar Advantage