Why Your Truck’s Resale Value Matters and How to Improve It
Resale value plays an important role in your truck’s long-term worth, but what factors influence it the most? And do you know how to keep it as high as possible throughout the time you have it? Understanding why your truck’s resale value matters – and how to maintain or increase it – can help you protect your investment over time. Here’s what you should know.
What exactly is resale value?
As the name suggests, resale value is what you can realistically expect to get for your truck if you put it up for sale, whether you bought it new or used. It’s also known as residual value, a term primarily used by leasing companies. They estimate the truck’s future value at the end of the lease period, subtract it from the purchase price, and then divide the difference by the lease’s number of months to determine the monthly payment.
Naturally, a truck’s resale value will usually decrease the longer you own it and the older it gets – unless you keep it long enough that it gains classic collector value!
Why is resale value important?
As you might expect, the more you get for your truck when you sell it, the more money you’ll have to put against the next truck you buy. But beyond that, high resale value is considered to reduce your overall cost of ownership by decreasing the difference between what you paid for it and what you got for it, and lower ownership cost is important to your business management.
What factors can affect resale value?
Everything being equal, a truck that was expensive when it was new should be worth more as it ages, at least in theory; but other factors are at work here too. Things that can potentially improve the value include the engine, with diesels usually bringing more; a 4×4 driveline versus 4×2; dual rear wheels on a heavy-duty model; and high towing capacity.
A brand known for reliability could command a higher price; while known issues or numerous recalls can reduce the value of a brand or specific model. While it’s outside of your control, any drop in new-vehicle prices will affect you; if you don’t reduce your price correspondingly, buyers may pay that now-smaller difference to get a new truck with a warranty. And, of course, the truck’s condition is vital.
What should I consider when buying a truck?
The truck has to meet your needs, of course, both for your business and for you personally. But once you have all of that, and it’s viable for you to do so, then perhaps think about upgrades that can make your truck more desirable when its time to sell. Mechanical or comfort features will be more of a draw, while technology moves so fast that electronic items may be outdated by then. If you don’t plan to use high-tech features, it might not be worth your while to specifically add them.
How can maintenance improve resale value?
Having the truck’s scheduled maintenance done on time can be essential to keeping it in good working condition. This includes oil changes, cooling system flushes, brake service, and replacing belts and hoses before they break or split. Keep every invoice, making sure it includes the VIN, date, mileage, and exactly what was done.
If you do your own maintenance or it’s through your fleet, make a record of everything done and with all of that information as would be on a shop work order. At resale time, buyers will want to know how you’ve treated the vehicle, and you can potentially ask more for a truck with complete maintenance records than for one without them.
What should I do to maintain resale value?
In a nutshell, look after it. Regular maintenance and good care will go a long way in maintaining your truck’s resale value, but there are additional measures to help keep your truck in great condition:
- If you’re in an area that uses road salt, consider rustproofing to help protect it; and keep it washed in winter, including getting slush and salt out of the undercarriage.
- In hot, sunny climates, use a dash protector to keep the plastic or vinyl from getting brittle and cracking.
- Try to keep the floors dry to prevent them rusting, and to prevent corrosion in any wiring there, such as to a power seat.
- Fix dings, dents, and deep paint chips to help prevent rust and to keep the truck looking good.
- If it has alloy wheels, keep them clean; brake dust can etch into them and be impossible to remove.
- If you’re a smoker, consider doing so outside the truck to help keep the interior looking and smelling higher-value, too.
How do I maximize resale value when I’m ready to sell?
Send it out looking its very best. The more work you put into getting it ready, the more likely it will bring top dollar. Clean it thoroughly, inside and out. Give it a coat of wax and brighten up any dull plastic trim with a restoration product from an auto parts store. If you don’t have the time, get it professionally detailed.
Have any of your company-specific logo decals or vehicle wrap removed, so buyers’ offers won’t be lowered by the cost or inconvenience of doing it themselves. Consider if money put into the truck, such as replacing on-their-way-out tires, will raise its price well beyond what you spend. Think about what would convince you to pay more for a truck, and then do it to yours.
Protecting your truck’s resale value takes effort, but it pays off when it’s time to upgrade. If you’re noticing signs it’s time to sell your commercial vehicle, taking steps now to maintain its condition can help you get the best return on your investment. And once you’ve done all that, listing it on Commercial Truck Trader can ensure you get more eyes on your vehicle ; and then, once you’ve sold it, to find your next truck too.
Jil McIntosh
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