Only a few conversation topics are more controversial than the ‘right’ price for a second-hand car. There are, however, a few rules of thumb you can use to get a better deal – if only slightly – on the inherent value of a car. OPENLANE gives you an overview of some of the most important factors.
- Buy and sell in tune with the seasons
The used vehicle market heavily fluctuates based on the seasons. While after the first signs of snow you’ll exclusively want to hit the road with a sturdy 4x4, most sun lovers will be lining up in the showroom to pick a new convertible on the first sunny day of spring. Prices of such cars swing based on these changing desires, so it might be a good idea to score a few nice convertibles while it’s winter.
- The right car in the right place...
No two markets are alike. While SUVs are becoming more prevalent in all corners of Europe, a few major differences remain with the ‘traditional’ car segments. Traditionally speaking, the French enjoy buying French cars and Italians have a preference for Italian brands, but there are also some other noticeable tendencies. For instance, sedan cars are much more popular amongst Southern Europeans, whereas the average Western European customer is quicker to opt for a practical station wagon. The tax system is also a major determining factor: in ‘diesel country’ Belgium you will find a lot more formerly leased cars with modern diesel engines, while Italy, a CNG forerunner, will count a remarkably high number of natural gas powered vehicles.
- ...and from the right nest
While brand loyalty has steadily become a thing of the past when choosing a cereal or dishwasher tablets, a lot of European car buyers will cling tightly to their favourite car brands. For professionals there is one golden rule: if you want to play safe, buy German. The German Trifecta of Audi, BMW, and Mercedes-Benz continues to dominate popularity lists, while Opel and Volkswagen (despite Dieselgate) also benefit from their German roots.
- Small cars, small worries
Relatively speaking, the loss of value of a city car is a lot more limited when compared to an exclusive sedan or sports car. This can largely be explained by their lower purchase price, while their often lower mileage is also advantageous. Moreover, because there is a large supply of such cars, they are a relatively safe investment. The downside of this is that the resulting margins for the seller are tiny.
- Pick 50 shades of grey
People who want to trade quickly on the used car market are wise to purchase ‘safe’ colours. Cars with dark, neutral colours are still more popular in today’s market as opposed to brightly coloured ones. Ferrari Red is arguably the only exception to this rule, because you can just about forget finding someone who wants to buy a canary yellow Porsche.
- The importance of trim level
Apart from colour, the trim level is virtually the most important element when choosing a used car. Air conditioning has become a prerequisite, but a lot of people still want to pay a little extra for built-in navigation systems or leather seats. While recent safety technology such as lane assist or an automatic emergency brake can significantly boost the inherent residual value of a car, it is uncertain whether buyers want to lay down extra money for these features.
- Choose the correct engines
Whereas European consumers up until recently usually went looking for diesel engines, today it is harder to pin down which type of engine is under the hood of each car. Not only are petrol engines on the rise (and not exclusively in small urban cars), but also, more and more hybrid and electric cars are popping up in the used car market. These are still quite expensive - because of their high purchase price - urging extra caution.