Resale Values – Modified or Stock?

[jphanna]

Guys I have always been brought up with the notion that you leave the car as it was, delivered from the factory to keep the resale value high. If that is the case why do so many dealers dress up ‘taxi packs’ with a set of nice rims and sometimes body kits?

The way I see it the RED BOOK doesn’t mention modified cars, only condition and mileage as tools for measuring value….

For those that sell a lot of cars, have you noticed any difference selling, from bog stock, to modified….(modified in this case meaning rims/body kits/engine mods/exhaust/suspension)

[FPV+fteT3]

It's a 2 edge sword when you go to the dealer with nice wheels, paintwork bodykit, stereo etc and ask for a trade inn your told none of that adds value to the car, however if you are purchasing a vehicle the wheels and stereo and suspension mods do indeed attract a premium over the standard car.

[Smoke Pursuit]

Trade ins look at the basic car, what it was originallly.. Very rarely will mods or even options give you a better trade in.. Eg. trading an XR6 with premium sound wont get you $1000 extra then trading one with a stock sound, even tho the premium sound cost you $1000 upfront.. They wont really look at that..

[JG66ME]

Originally Posted by bfiipursuit

Trade ins look at the basic car, what it was originallly.. Very rarely will mods or even options give you a better trade in.. Eg. trading an XR6 with premium sound wont get you $1000 extra then trading one with a stock sound, even tho the premium sound cost you $1000 upfront.. They wont really look at that..

The lease cost of my FG XR 6 ute was reduced by $30 a month when I selected the $1000 XR sports pack option (18inch wheels, blue tooth and iPod) because of the better resale value.

When it comes to after market add ons I don't think they add much value, sometimes lower it.

Dressing up taxis is to make them more attractive and is not the same as a "Fully Sick" modded car.

[EDManual]

Its much easier to sell a car that has factory options than a standard one.

[cjf]

Originally Posted by EDManual

Its much easier to sell a car that has factory options than a standard one.

That being said if you modify your car with aftermarket gear you will nearly always lower the resale value. As I have found out the hard way with many of my cars over the last 25 years. A good clean factory example of a model will always keep its resale value over a modded car.

[seXCmont]

plus if someone saw a stock car and the same car been modded they might take the stock onefor many reasons. 1 being that it doesn't give off that feel that sumone did it up and thrashed it.

[FPV+fteT3]

jphaana

The way I see it the RED BOOK doesn’t mention modified cars, only condition and mileage as tools for measuring value….

The prices red book quote sometimes are rediculous a better idea on a cars value can be obtained simply by looking at carsales.com and seeing what prices people are asking for various models and yes I understand redbook quote trades, private and dealer pricing but how they arrrive at the figures is like spin the bottle IMO. in some cases to buy at redbook price the vehicle would have to be a stat writeoff or in need of a total resto.

[big_landau]

factory options are worth there weight in gold,dodgy aftermarket tack on modifactions will devalue your car.

[DJR-351]

Originally Posted by seXCmont

plus if someone saw a stock car and the same car been modded they might take the stock onefor many reasons. 1 being that it doesn't give off that feel that sumone did it up and thrashed it.

To right, i only buy second hand and if it is original as factory, i tend to view it as an honest vehical.

Sometimes (not always though), the add ons can help detract the buyer from any problems the vehical may have.

Its that first impression the dealer is going for.

[prydey]

whilst the cost of modifications done will not be fully recouped upon sale, i believe they can improve the resale over a std example.

if you look at 2 identical cars and yet one has a nice set of mags, but it is only about $500 more, you choose the one with mags as it would cost you more than that to put mags on the stock one. that is providing you wanted mags and liked the ones already on the car.

same goes for things like exhausts, tint, suspension, engine mods etc. if there is sufficient evidence the work has been done to a high or reasonable standard, and it was all things i would be looking at doing in the future anyway, i would be prepared to pay a premium for that over a stock version. whilst the seller will not recover anywhere near the cost of the work, it will fetch more than a std version.

[4Vman]

Non factory performance modifications will nearly always kill resale value on modern cars.. mags, exhausts, lowering, CAI's, tunes etc all point to the perception of a "hard" life...
A stock example of an identical car will get better resale, even if the buyer plans on modifying it anyway...
Best bet if you plan to mod is keep the original parts and return it to std before selling, then sell the bits off separate.

[prydey]

Originally Posted by 4Vman

Non factory performance modifications will nearly always kill resale value on modern cars.. mags, exhausts, lowering, CAI's, tunes etc all point to the perception of a "hard" life...
A stock example of an identical car will get better resale, even if the buyer plans on modifying it anyway...
Best bet if you plan to mod is keep the original parts and return it to std before selling, then sell the bits off separate.

its not a given though. if i were looking to buy a ba/f xr8 and found 2 that were the same and yet one had a full stainless exhaust on it, but only $500 more, i would choose the one with the full exhaust. the seller is making less money than if he left it stock but the resale of the actual car has improved.

when you try to sell a modified car, you are aiming at a much smaller market though. there are many people out there, probably the bulk of buyers, who don't modify cars or plan on modifying cars and an untouched version will appeal much more.

cosmetics like tint and rims can improve things though. most new cars come with rims rather than hubcaps now anyway and tint is more and more common as well.

[XplosiveR6]

Originally Posted by prydey

when you try to sell a modified car, you are aiming at a much smaller market though. there are many people out there, probably the bulk of buyers, who don't modify cars or plan on modifying cars and an untouched version will appeal much more.

Exactly, Performance Modified cars = less domand = less worth. Unless your willing to wait for that special buyer who wants your exact mods, you will have to settle for less cash.

[GT0132]

Originally Posted by 4Vman

Non factory performance modifications will nearly always kill resale value on modern cars.. mags, exhausts, lowering, CAI's, tunes etc all point to the perception of a "hard" life...
A stock example of an identical car will get better resale, even if the buyer plans on modifying it anyway...
Best bet if you plan to mod is keep the original parts and return it to std before selling, then sell the bits off separate.

Debatable point.....Personally if there were two cars side by side similar in model, age and kms traveled - one was in showroom condition but had aftermarket rims, exhaust, CAI and the other was stock but in less tidy condition I'd have no hesitation taking the immaculate modded car, especially if the seller could show the work was done by a reputable workshop. Rims are a personal preference but if they had appeal it wouldn't be a deal breaker for me

Where I may be a bit wary is where the mods extend to blowers , cams etc but then again , if the work is done by a reputable workshop rather than a backyard job then I'd be Ok with it...better still if engineering certification documentation was available for sighting.

Having said the above though, I'd probably steer clear from cars with the aftermarket Altezza rear lights fitted.

Agree with keeping stock parts for resale if you have the room at home

[CAMS290]

I could not get any more $$$$ for my Pursuit that would run a low 12 in full street trim, than a bog stock standard one..................in fact I got less when I sold it.

[prydey]

speaking personally, 3 years ago i was looking for an eb/d v8. i new that whatever car i bought, i would want mags, aftermarket full exhaust, lowered suspension and ongoing engine work. if you add all that up it equals possibly $3-4k depending on brands and quality.

at the time most std examples were around 4-6k. the cheaper ones you got what you paid for. i ended up paying 8k for mine. 64000km genuine 2 owner, lowered, exhaust, tint, mags, cam, ecu and interior upgrade. to some it may seem i payed too much but 3yrs (nearly 4) i couldn't be happier. it would've cost me more to do all that work myself than to buy a car already half done.

however, if you are looking to sell a modified car, and you want a reasonably quick sale, you may have to let it go cheaper than you would like. this current climate is not ideal to base car prices on.

[MITCHAY]

The funny thing I have noticed is the stealers lower the trade in because it is modified but then then try to talk it up because it is modified for sale :

[Thornie]

Originally Posted by FPV+fteT3

It's a 2 edge sword when you go to the dealer with nice wheels, paintwork bodykit, stereo etc and ask for a trade inn your told none of that adds value to the car, however if you are purchasing a vehicle the wheels and stereo and suspension mods do indeed attract a premium over the standard car.

i agree here, dearlers will give you jack even with suspension, mags exhaust km's etc. but when they come to resale they'll jack the price 5-10 grand more than private sales.

[jambo_xr6]

I for one always see aftermarket mods as decreasing the value of a car that I'm looking at because I hate it when people fiddle with things. Even though I do enjoy a few aftermarket mods myself, I just don't trust anybody else to get things right unless I do it myself. Seen way too many shortcuts where things look great on the surface, but underneath they've forgotten something crucial. It also gives off the smell that some young kid has owned the car and goodness knows how they've treated everything else that you cannot see.

On the other hand, I will certainly pay more for factory options if they are things that mean something to me like leather, navigation, premium sound, upgraded manufacturer rims (not aftermarket) but probably nothing extra for any other kind of options.