It is a well known fact that cars are a depreciating asset. The value of a car depreciates year on year as soon as it leaves the showroom. In India, the resale value of your car decreases by 15% immediately after your purchase and subsequently by 10% every year. After 5 years, you would have lost more than 60% of your car’s resale value and you stand to lose even more the longer you own your old car.
Factors influencing car resale value in 2021:
- New government regulations mandating the use of specific technologies
- A spike in supply of used cars
- Popularity of specific brands and models
- The car’s mileage and overall condition
Your car’s resale value is dependent on a variety of factors that can negatively impact the maximum value you can get by selling it. While you can control what car you buy and maintain as best you can, other factors may work against you when it’s time to sell.
These factors may reduce your car’s resale value by a significant amount if you sell your car in 2021. We’ll go through the factors that will reduce your car’s resale value in 2021 and how you can sell your car to get the best resale value in 2020.
The Government of India made BS6 compliance mandatory for all manufacturers. This has introduced a new standard that is environmentally friendly and should provide better efficiency. Since 2019, a few manufacturers had already started introducing BS6-compliant models.
However, if you own a car that is 2-3 years old, your car will be BS4 compliant, which will become undesirable in the coming years. Prices for BS4 cars are predicted to decline significantly in the coming years as demand for the older cars reduces. As an example, a 2017 BS4 Hyundai Grand i10 currently gets as much as ₹4.5 lakhs if sold today. After the year ends, the combined effect of depreciation and the preference for BS6 cars would reduce the resale value to below ₹3 lakhs.
A Buyer’s Market
With the BS6 regulations and new cars being launched in 2020, 2021 is seen as a year when many people will be upgrading from their old cars. This means more pre-owned cars will be sold in the used car market, reducing the resale value you can expect to get next year.
According to reports, there has been an increase of 25% in the pre-owned car sales of popular cars like the Maruti Suzuki Baleno and Hyundai Grand i10. As the 2020 comes to an end, many more pre-owned cars are expected to be put up for sale, which will make selling your car in 2021 much more challenging while also reducing the value you can get.
How to Get the Best Resale Value for your Car
While it may seem that time is running out, there is actually plenty of time left to get the best resale value for your car. Certain car models like the Hyundai Grand i10 are seeing great demand and it is expected that it will continue into 2021 as well. This should ensure that if you own an in-demand car, you will be able to get a good resale value for it.
But what about other cars? If your car has been well-maintained and the mileage is within reasonable limits, you could get much better resale value than the market by selling to Spinny. Spinny’s 200-point evaluation certifies your car’s condition and offers the best price that truly values your car. The instant offer and instant payment also ensure that you’re not waiting to get the best resale value for your car in 2020.