These 6 Mistakes Cost You $10K on the Value of Your Car Without Your Realizing It
Written by
Andrew Lisa
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Amber Barkley
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When people think of long-term car ownership costs, things like fuel economy, insurance and maintenance expenses usually come to mind first — but depreciation is one of the most important yet often neglected considerations.
Your car’s ability or inability to maintain its value can mean the difference of thousands of dollars when it comes time to sell — but depreciation depends on more than just the make, model and manufacturer. What you do and don’t do while you own your vehicle can cost you or save you five figures at your trade-in or sale, and it’s up to you not to make costly unforced errors.
GOBankingRates spoke to experts who said to avoid the following expensive mistakes at all costs, because they can potentially shave five figures off your car’s resale value.
Not Changing Your Oil
If you want your car to sell for less than it might have, step one is not maintaining it properly and consistently.
“Skipping regular maintenance can cost you $10,000 in resale value,” said Melanie Musson, an auto industry expert with AutoInsurance.org. “If you don’t do something as simple as oil changes, your engine will die prematurely, and you’ll be left selling an inoperable car that is worth next to nothing.”
According to Sterling Ford, old, dirty engine oil loses its viscosity and lubricating properties, increasing friction between moving parts, generating heat, clogging filters, warping parts and eventually leading to engine failure, if neglected long enough.
If a dead engine is what compels you to sell or trade in your car, Consumer Affairs agrees with Musson in saying you should expect to take a five-figure hit on its resale value.
Getting Into an Accident
They call them accidents because no one intends to get into one, but if you crash because you were driving aggressively or while distracted, then you’ve made the mistake of getting into an avoidable collision — and it’ll cost you.
“Getting into an accident can cost you $10,000 in resale value,” said Musson. “Even if your car has been repaired, the history of significant damage reduces its value.”
According to The Zimmerman Law Firm, an accident can devalue your car by up to 30%.
Skipping Mileage-Based Service
Musson said that skipping “major recommended maintenance projects” is another ticket to avoidable five-figure automotive devaluation.
“Some cars require a major service at 100,000 miles,” she said. “That service could include a timing belt, water pump, fluid lines, fluid replacement and more. The service is expensive, so owners are often tempted to skip it, but by skipping manufacturer-recommended repairs, your car could break down. The part that needed to be replaced could fail, and in doing so, wreck other working parts of the car.”
Making After-Market Modifications
Used car buyers trust the automaker’s factory more than your local tuner shop, and they’re often rightfully wary of modifications made by someone other than the manufacturer.
“Modifying your car with weird aftermarket parts is another no-no,” said Jason Farrell, an ASE-certified master technician at Mechanic’s Diary. “It’s best to just stick with factory options, so it looks and feels like it came from the dealership. Extra junk could turn off someone looking to buy.”
According to Glendale Nissan, the modifications that are most likely to devalue your car are adding a sunroof because of the potential for leaks, changing the paint color, swapping the engine and even the common addition of a stereo system that doesn’t fit with the rest of the interior.
Holding Onto Your Car for Too Long
Once you experience the glorious feeling of making your last car payment, no one could blame you for wanting to keep your payment-free vehicle for as long as mechanically possible before taking out another loan.
But clinging for too many miles can actually cost you money in the long run.
“Holding onto a car for too long isn’t smart for value,” said Farrell. “Usually around 100,000 miles is when it starts losing value faster. Think about trading up before then.”
Lowering Your Vehicle
The term “lowrider” wouldn’t appear in the lyrics of so many rap and rock songs if vehicles with asphalt-hugging bodies didn’t look so undeniably cool — but when it comes time to sell, your buyer probably won’t share those sentiments.
“Lowering a car can have a major negative impact on its resale value,” said Ben Michael, director of auto at Michael & Associates law firm. “Doing this has a lot of effects on the car’s drivability. It can cause tires to wear unevenly, affect wheel alignment, impact handling, increase the likelihood of vehicle damage and more. That alone can negatively impact the resale value. On top of that, this type of modification is not desired by the vast majority of people, so the pool of potential buyers when reselling will be significantly slimmer.”
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