Buying a car isn’t as easy as it used to be. Between the crazy market values and the fluctuating conditions, it is just not as simple as it was 50 years ago. Consequently, selling a used car isn’t as easy as it used to be, too. A lot of factors play into determining your car’s value. For instance, the brand of the car plays a huge role in how much it’s resale value would be. Is the brand reliable enough? Does it age well? These are the questions people would ask about your car brand’s reputation. There is also the factor of mileage and how many people used the car, and the condition it’s in. Still, these are all factors that most people would expect and already know about. What many are not aware of is the fact that location plays a very important factor in determining your car’s worth.
How does location affect a car’s worth?
If you are living in a suburb that consists of families and housewives, how much do you reckon the value of a Ferrari would be in a place like that? Truth is, supply and demand play an important factor in cases like these as much as any other transaction. In a suburb like that, mid-priced family sedans are the most popular thing. Who would want to go for a $100k sports car, and why would they even need it?
Then you have convertibles and sports cars in warmer climates; they would be in extremely high demand in places like these, because what’s better than driving in the perfect weather with the wind blowing your hair, just like in the movies.
Regulations and facilitation in a place
Some states in the United States have more complicated and longer procedures to relinquish ownership of your car to another. This plays a huge factor as many people just don’t want much bureaucracy to play into a transaction like this. When you’re selling your car in Florida, you can sell it to a company which would take care of the entire deal, and you wouldn’t have to lift a finger to deal with private parties or go into negotiations. You’d basically taken a shortcut and made the entire sale much easier for yourself. Not all states have such relaxed facilitations, which is why selling your car in some might be less comfortable.
This is probably the factor that is out of your hands the most. Sometimes the market in a certain state is just doing poorly. Car prices are going down and the entire industry is suffering, and there’s nothing you can do about it. Your car which should be sold for $50k is only bringing in $35, and if you want to sell, you’re going to have to settle or wait till things get better.
Geography plays a factor too
Believe it or not, even geography can play a factor in a matter such as determining the value of your car. Hotter climates tend to affect the car faster, leading to a much quicker deterioration in the engine and battery, something that greatly reduces the value of any car. The same works for very cold climates, which also reflects poorly on the inner mechanics of the car. Climate conditions aside, it can be as simple as how convenient your car is in the terrain. Sporting a low Maserati in a mountainous terrain might not be the smartest idea, and it’ll definitely affect the resale value.
These are just some of the location related factors that will definitely affect your car’s worth. So, you should take these into consideration before purchasing one, let alone trying to sell it, because they will play a part before the sale is over.