This is part two of a two-part series! Click here to read part 1 before jumping into part 2.
2.) Type
So the second component comes down to type. Now, you want to avoid those obscure vehicles, such as a Nissan Leaf or some vehicle that may not be a crossover or an SUV, or simply a vehicle you are not sure how to classify. Vehicles that don\’t fit a specific mold or particular kind of vehicle can become an issue when reselling them for top value.
You may have certain vehicles that are popular for a certain period due to specific reasons. But the important thing is not to buy a vehicle simply because it\’s just a fad. Don\’t make the mistake I made and purchase a vehicle like the Chrysler Crossfire, which I bought a long time ago. It was a vehicle that was not quite a convertible or a coop, and it didn\’t have trunk space or any space for someone to use as a commuter. It had Mercedes components but wasn\’t actually a performance vehicle. It simply wasn\’t a great vehicle in its sector. Therefore, it sold well below the book value because the vehicle was so obscure.
Ideally, avoid obscure vehicles and vehicles that don\’t fit a specific genre or type.
The bestselling segments are crossovers, pickups, and SUVs, all in that order. However, this doesn\’t mean you should only buy one of those three vehicles because they are the best-selling segments. Simply don\’t purchase something obscure.
It\’s important to look at the right trim levels and determine what the mass market is doing and how you can buy a vehicle that is hitting all the bases for what people are looking for in a vehicle. Be mindful of where the market is going so you know which cars you should purchase and which ones you should stay away from. Also, look into finding suitable options.
For example, if you are in the truck segment, you may want to consider buying an extended cab truck or a crew cab truck. This truck would possibly have four real doors and four-wheel drive. Why? Because this truck would have a broader appeal. Also, see if the truck has an automatic or manual transmission and buy it with an automatic transmission, even if you don\’t necessarily want it. There are not so many trucks available with a manual transmission since there are fewer people who can drive a manual transmission.
The last level I would bring up has to do with trim level, not buying that bare minimum or the luxury trim level, but buying something in the middle somewhere.
If we were looking at that F150 that we were looking at as an example, you wouldn\’t buy an XL or a platinum one, but you may want to consider purchasing an XLT or a Lariat version.
3.) Options
So the third component comes down to options. Now options are especially important when it comes to resale.
However, having as many options as possible does not necessarily equate to a higher resale value. You have to consider what options are actually adding value and which ones are not.
So when you\’re looking at buying a vehicle, you may have a specific color in mind that would work well for your lifestyle and the way you want to present yourself, but which may not work well for the masses. You may want to consider another color possibly.
Now, one of these colors you may think would fall in that category is a bright yellow, but for whatever reason, a bright yellow does actually have a very good resale value. It\’s usually in the top two or three resale values based on color.
So when you\’re looking at a vehicle, don\’t just immediately write it off but do a little bit of research to figure out whether that vehicle has a positive or negative impact based on color. You can do that through a CarGuru search, look for that color and model, and see what it\’s listed for based on the year, make, and model.
So we\’ve discussed before that engine modifications, wraps, any type of body kits, and specific like these have a specific demographic. Modifications like these may not actually add value. It may even negatively affect the resale value of your vehicle.
Often people put a ton of money into these things and realize they can not necessarily return that value because it\’s too specific in style.
An example of this would be the snorkel on the TRD Pro-Tacoma. When looking at an off-road vehicle like a TRD Pro, many people want the functionality of a TRD pro for its off-road capability, but many might now want the additional snorkel option.
The snorkel option gives you the ability for your vehicle to be submerged to a certain level, continue breathing, and not flood. But many might not want a snorkel hanging out of the side of your quarter panel and going up the side of your passenger side window.
That\’s an example of something Toyota did in particular, which I don\’t believe necessarily fit the broad stroke.
For example, my uncle purchased a new vehicle a few years back. He was looking at Cadillacs, typically his go-to, GMCs, and Buicks, and found a Buick Enclave at a dealership that had sat there as a brand new vehicle for over a year. It was finished in a pearl white exterior paint and had a saddle-colored leather interior. For whatever reason, there were no takers or buyers for that vehicle.
At the time, he lived in the Northeast region of the United States. It seemed as though the European-influenced saddle interior was not well accepted or desired by buyers. It might sell well in the Southwest but not well up in that region.
He got a great deal on it, but when purchasing a vehicle, you need to understand the regional aspects of what sells in your area and what doesn\’t.
Call To Action
My call to action today is to look at your current vehicle, figure out whether that vehicle is something that hits those three components, and determine how you can make adjustments to check these three things in the future when you\’re in the buying market once again.
Make sure it has a clean history as a clean title and that the vehicle is in the right type based on the trends and what is selling well. Also, be mindful that the options are typical and what people typically would want on those vehicles. Ensure you\’re not buying a vehicle that is a niche vehicle that does not necessarily allow you to resell it and get top dollar for it.
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